Fintech: Southeast News

Fintech Southeast News curated each weekday for Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee

Share

 

021821

 

Posted March 08, 2021

 

CHARLOTTE, N.C., March 2, 2021 /PRNewswireOpens in a new window/ -- Truist Financial Corporation (NYSE: TFC) demonstrated its commitment to corporate social responsibility by issuing its first social bond of $1.25 billion in aggregate principal amount. As part of the company's multitiered environmental, social and governance (ESG) strategy, the net proceeds from the issuance will support new and existing eligible social programs, including investments in affordable housing and enhancements to essential nonprofit services for communities in need.

"We were thrilled by investor reception of our first social bond, particularly in the face of significant market volatility," said Corporate Treasurer Donna Goodrich. "Our heavily oversubscribed issuance demonstrated investor enthusiasm for this asset class and a desire to further the important work of building our communities, while also affirming confidence in Truist's credit quality."

Notable terms and aspects of the social bond issuance include:

  • First social bond issued by a U.S. regional bank
  • 1.267% fixed-to-floating rate senior notes due March 2, 2027 (CUSIP: 89788MAD4)
  • Redeemable prior to maturity via a call feature included in the 6-year non-call 5 (6NC-5) structure
  • Participation from more than 120 investors, including high-quality ESG-dedicated portfolios, with order book oversubscribed by 2.7 times
  • Pricing reflected tightest new issue spread for a 6NC-5 note issued by a U.S. bank (50 basis point spread to the benchmark Treasury yield)

"Investing in our communities is one of the most tangible ways we're able to fulfill our purpose of inspiring and building better lives and communities," said Head of Truist Corporate Social Responsibility Tori Kaplan. "This first social bond marks a significant milestone in our overall ESG commitment and our journey to advancing equity in the communities we serve."

Read the rest here

Terms of Service Privacy Policy Site Map
Copyright @ 2021 Globalspeak, All Rights Reserved