State Street Issues First $500 Million Bond Under SFDR

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Picture of State Street has announcing the issuance of its first $500 million bond under the EU's Sustainable Finance Disclosure Regulation (SFDR).

State Street Corporation said it had issued $1 billion in senior unsecured bonds, including a $500 million bond as the first one under its Sustainability Bond Framework, which allows it to issue Green, Social, and Sustainability Bonds.

The Sustainability Bond offering, totalling $500 million of fixed-to-floating rate senior notes due in 2026, was underwritten by Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC, acting as both bookrunners and sustainability bond structuring advisors.

The underwriting syndicate included Goldman Sachs & Co. LLC, Academy Securities, Inc., CastleOak Securities, L.P., R. Seelaus & Co., LLC, and Samuel A. Ramirez & Company, Inc.

“We are proud to announce our new Framework, alongside this important bond issuance, as we believe it extends the pathways for our broader ESG initiatives,” said Eric Aboaf, vice chairman & chief financial officer at State Street. "These bonds are very important ways to get the money needed to support projects that focus on sustainability, and our new Framework is very important to help us direct investment into these areas."

State Street is still committed to taking business and operational steps that address important global challenges that affect employees, clients, communities, and other stakeholders. For example, the company's 10 Actions to Address Racism and Inequality show how serious the company is about tackling these problems.

State Street will set aside an amount equal to the money from bonds sold under the Framework to pay for projects that follow the Framework's rules and principles.

These include affordable housing projects, renewable energy projects (including wind and solar power), Green buildings (LEED Gold and above), socioeconomic advancement and employment (with a focus on racial equity, social justice, education, or workforce development), essential services (including education and healthcare), and environmental infrastructure and services (including clean transportation and sustainable water management).

Source: Business Wire

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