State Street Issues $500M Inaugural Sustainability Bond

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State Street Corporation has announced that it has issued $1 billion of senior unsecured bonds, including an inaugural $500 million bond issued under its Sustainability Bond 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.

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), LEED certified buildings, 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).

Wells Fargo has also jumped on the sustainability bond bandwagon. In August, the bank 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.