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State Street Announces Inaugural $500 Million Bond Issuance Under its Sustainability Bond Framework

State Street Announces Inaugural $500 Million Bond Issuance Under its Sustainability Bond Framework

The Framework enables State Street to fund Green and Social projects that will directly support State Street’s broader ESG strategy

State Street Corporation today announced that it has issued $1 billion of senior unsecured bonds, including an inaugural $500 million bond issued under its Sustainability Bond Framework (the “Framework”) which enables the issuance of Green, Social, and Sustainability Bonds. The Framework was developed as a key element of State Street’s broader environmental, social and governance (ESG) strategy.

The Sustainability Bond offering, totaling $500 million of fixed-to-floating rate senior notes due 2026, was underwritten by Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC acting as both bookrunners and sustainability bond structuring advisors. The full 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 tools for sourcing funding that is critically needed to support sustainability-focused projects, and our new Framework is vital to helping us channel investment into these areas.”

See related articles: State Street Appointed Service Provider for Neuberger Berman First Actively Managed Thematic ETFs, State Street Launches SPDR Nuveen Municipal Bond ESG ETF

State Street remains committed to business and operational activities that address critical global issues, including the firm’s 10 Actions to Address Racism and Inequality, that are important to employees, clients, communities, and other stakeholders.

State Street will allocate an amount equivalent to the proceeds from bonds issued under the Framework to fund projects that meet the principles and guidelines within the Framework. 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).

Read more about State Street’s ESG highlights in, “Accelerating Growth, 2021 ESG report.” A copy of the Framework can be found here.

Source: State Street Corporation


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