Forbright issues first $ 125 million green bond
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First American banking holding company with less than $ 150 billion in total consolidated assets – and eighth in total – to issue a bond whose proceeds are dedicated to financing the clean energy transition
CHEVY CHASE, Md. – (BUSINESS WIRE) – Forbright Inc., recently renamed Congressional Bancshares, Inc., or Forbright, today announced the completion of the private placement of its first green bond, offering $ 125 million. Subordinated variable rate bonds due January 1, 2031. The bond has been issued by the bank holding company, and the proceeds will be injected into the bank as capital and used to finance or refinance projects aimed at driving decarbonization and accelerate the transition to a more sustainable economy.
Forbright is the first U.S. banking holding company with total consolidated assets of less than $ 150 billion, and only the eighth financial institution in total, to issue a green bond. This is an important step towards fulfilling Forbright’s commitment to be the first full-service U.S. bank aligned with its mission around sustainability and decarbonization.
“We launched Forbright to enable our customers, partners and stakeholders to directly contribute to a more sustainable future and to seize the tremendous investment opportunities presented by the decarbonization of the economy. Our first green bond is one way to keep that promise, ”said Founder and Executive Chairman John Delaney.
Forbright Green funding framework guide the selection and management of projects funded by the net proceeds of the Green Bond offering. Sustainalytics, an experienced global leader in high quality environmental, social and governance (ESG) research, ratings and data, has independently verified that Forbright’s green funding framework “is credible and impactful and aligns with the four building blocks” of the Green Bond Principles 2021 (GBP) of the International Capital Market Association (ICMA). Funded projects will focus on eligible renewable energy and energy efficiency project categories, seeking to reduce greenhouse gas emissions and fossil fuel consumption, in pursuit of United Nations Sustainable Development Goal 7 (Affordable and clean energy).
In September, Forbright only became the seventh U.S. bank to adhere to the United Nations Principles for Responsible Banking, the predominant global framework for a sustainable banking industry. To maintain transparency when the net proceeds from the Green Bond offering are allocated, Forbright intends to publish at least once a year a report outlining the amount of net proceeds allocated by category of eligible projects, descriptions of specific projects financed, carried out or expected impact measures, to the extent possible, and unallocated balances.
“We pride ourselves on providing a way for investors to align with a values-driven organization committed to a brighter, greener future while achieving their investment goals, and also to offer borrowers the capital they need. they need to fund their clean energy initiatives, ”added Forbright Bank Chairman and CEO Don Cole. “This offering fully reflects our belief that sustainable banking services are good for our customers, our investors, our business and society. ”
For the Green Bond, Keefe, Bruyette & Woods private placement offer, A Stifel company; and PNC FIG Advisory, part of PNC Capital Markets LLC, served as placement agents. PNC Capital Markets LLC served as ESG structuring agent. Holland & Knight LLP served as legal counsel to Forbright, and Squire Patton Boggs (US) LLP served as legal counsel to the placement officers.
This press release is for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy, the Green Bond, and there will be no offer, solicitation or sale in a jurisdiction in which such offering, solicitation or sale would be illegal prior to registration or qualification under the securities laws of such jurisdiction. The Green Bond has not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the requirements of registration. Debt evidenced by the Green Bond is not a deposit and is not insured by the FDIC or any other government agency or fund.
Forbright Inc., renamed Congressional Bancshares, Inc., is the banking holding company of Forbright Bank. Forbright Bank (www.forbrightbank.com), renamed Congressional Bank, member of the FDIC, is a full-service bank, commercial lender and asset manager headquartered in Chevy Chase, Md., committed to accelerating the transition to an economy sustainable and clean energy by funding the companies, investors, and innovators who are driving this change. With approximately $ 6 billion in assets owned and managed, the Bank provides lending, banking and asset management services to clients across the United States. Its business banking group provides nationwide lending products, including home loans, working capital, warehouse lines of credit, term loans, and term loan purchase contracts. to entrepreneurs, growing middle market companies and sophisticated investors and operators in cleantech, healthcare, finance services, technology, real estate, renewable energy and other sectors where a reliable and highly reliable lender reactive is needed. The Bank offers sophisticated and competitive deposit products, which will soon include deposits linked to decarbonization and sustainability-focused loans, to businesses and individuals.
FDIC member as a Bank of Congress. Congressional Bank is an Equal Housing Lender and provides loans regardless of race, color, religion, national origin, gender, disability or family status.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views regarding, among other things, future events and our financial performance. Any statement regarding the expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance of our management are not historical facts and may be forward-looking. Words or expressions such as “anticipate”, “believe”, “may”, “could”, “could”, “could”, “foresee”, “potential”, “should”, “shall”, “estimate” , “Planning”, “” projects “,” in progress “,” in progress “,” expects “,” intends “and similar words or expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. The inclusion or reference to forward-looking information in this press release should not be taken as a representation by us or any other person that future plans, estimates or expectations that we envisage will be realized. We have based these forward-looking statements on our current expectations and projections regarding future events and financial trends that we believe could affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in these forward-looking statements due to risks, uncertainties and difficult-to-predict assumptions, including difficult market and adverse economic conditions and uncertainties associated with the COVID pandemic. -19, including the emergence of variant strains of the virus, particularly in the markets in which we operate and in which our lending is concentrated, including declines in housing markets, rising unemployment rates and downturns in Economic Growth ; our expected future financial results; the overall health of the local and national real estate market; the credit risk associated with our loan portfolio, such as possible additional loan losses and decreased loan collectability due to the COVID-19 pandemic and the policies and programs implemented by Coronavirus Aid, Relief, and Economic Security Act, including its forbearance provisions and the effects on our loan portfolio of our Paycheck Protection Program lending activities, particularly with our commercial real estate loans.
If one or more events relating to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we expect. In addition, many of these risks and uncertainties are currently magnified by and may continue to be magnified by the COVID-19 pandemic, or could be in the future, including the emergence of variant strains of the virus, the rate at which the COVID-19 vaccine can be distributed and administered to residents of the markets we serve and the United States in general, and the impact of different government responses that affect our customers and the economies in which they operate. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unforeseen events, except as required by law.
Aaron Judah, [email protected]