Wells Fargo announced 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.