Wells Fargo Issues a $2 Billion Climate and Inclusive Communities Bond
Wells Fargo & Company
Wells Fargo issued its second climate bond. Bond funds affordable housing, economic opportunity, renewable energy, and clean transportation. Wells Fargo Securities, LLC hired five minority-and female-owned broker-dealers as bookrunners. On Aug. 8, 2022, the deal closed. Wells Fargo ranked 41st on Fortune's 2022 list of America's largest companies.
Wells Fargo announced today the issuance of its second Inclusive Communities and Climate Bond, a $2 billion bond that will 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.
“These efforts are important for both our business and our corporate sustainability goals.”
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. They, along with 19 additional broker-dealers whose owners are also from underrepresented groups, will receive 75% of the underwriting fees from the transaction. BurgherGray LLP, a minority-owned law firm, was retained as issuer’s co-counsel for the offering, together with Faegre Drinker Biddle & Reath LLP. Gibson, Dunn & Crutcher LLP served as underwriters’ counsel.
“Wells Fargo’s inclusion of twenty-four diverse firms across all tiers of this transaction’s underwriting syndicate demonstrates the depth and breadth of the bank’s commitment to the diverse dealer community,”
said Sam Ramirez, Jr., Senior Managing Director of Samuel A. Ramirez & Company, Inc., one of the broker-dealers involved in the issuance.
“We applaud Wells Fargo for giving us, and other diverse firms, the opportunity to perform at the highest level. It is a visible example of their leadership in meaningful engagement with diverse firms.”
The transaction priced on Aug. 8, 2022. Unless redeemed, the notes will pay interest semi-annually at a fixed rate of 4.54% until Aug. 15, 2025 and then pay quarterly interest based on SOFR + 1.56% until the stated maturity date of Aug. 15, 2026.
Additional information about the company’s Sustainability Bond Framework and first Sustainability Bond is available here.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three U.S. households and more than 10% of small businesses in the U.S., and is a leading middle market banking provider in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 41 on Fortune’s 2022 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Source: WF news