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Wells Fargo issues 2 bln USD bond for inclusive communities, climate

SAN FRANCISCO
2022-08-16 03:14

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SAN FRANCISCO, Aug. 15 (Xinhua) -- Wells Fargo, one of the leading U.S. banks, announced Monday the issuance of its second Inclusive Communities and Climate Bond, which involves 2 billion U.S. dollars, to finance projects and programs supporting housing affordability, economic opportunity, renewable energy, and clean transportation.

"Through the issuance of this second Sustainability Bond, Wells Fargo is continuing our commitment to strong, resilient communities," said Chief Sustainability Officer Robyn Luhning.

Five broker-dealers whose owners include people of color, women, and service-disabled veterans joined Wells Fargo Securities, LLC to serve as bookrunners for the issuance, the San Francisco-headquartered bank said.

Along with 19 additional broker-dealers whose owners are also from underrepresented groups, they will receive 75 percent of the underwriting fees from the transaction.

The transaction priced on Aug. 8, 2022. Unless redeemed, the notes will pay interest semi-annually at a fixed rate of 4.54 percent until Aug. 15, 2025 and then pay quarterly interest based on SOFR (Secured Overnight Financing Rate) plus 1.56 percent until the stated maturity date of Aug. 15, 2026, according to the announcement.
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