Wells Fargo Announces $2 Billion Climate & Inclusive Communities Bond
Wells Fargo & Company
Wells Fargo issued a $2 billion Inclusive Communities and Climate Bond to finance housing affordability, economic opportunity, renewable energy, and sustainable transportation.
Wells Fargo's Chief Sustainability Officer said:
"Wells Fargo is continuing our commitment to strong, resilient communities through the issuance of this second sustainability bond. These efforts are important for both our business and our corporate sustainability goals.”
Five broker-dealers whose owners include people of colour, 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 the issuer’s co-counsel for the offering, together with Faegre Drinker Biddle & Reath LLP. Gibson, Dunn & Crutcher LLP served as underwriters’ counsel.
Sam Ramirez, Jr., Senior Managing Director of Samuel A. Ramirez & Company, Inc., one of the broker-dealers involved in the issuance, said:
"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. 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.”
On August 8, 2022, the transaction was priced. Until August 15, 2025, interest on the notes will be paid semi-annually at a fixed rate of 4.54%; after that, interest will be paid quarterly at a rate of SOFR + 1.56% until August 15, 2026, the stated maturity date.