How PNC’s Inaugural Social Bond Aims to Benefit Underserved Communities

PNC has raised $700 million from its first social bond, the proceeds of which will be used to benefit low to moderate-income individuals and communities or vulnerable or underserved populations.

According to PNC, social projects that could benefit from the bond’s proceeds will focus on affordable housing, access to essential services and socioeconomic advancement and empowerment.

Alongside PNC, four brokers led the issue. Academy Securities, Loop Capital Markets, Samuel A Ramirez & Company and Siebert Williams Shank & Co acted as co-managers. Each is owned by either people of colour, women, or service-disabled veterans.

Kristi Eberhardt, head of PNC’s sustainable finance practice, said: “PNC is committed to advancing and improving the communities we serve and building a more equitable and inclusive future for all.

“This social bond insurance builds on existing initiatives already underway, particularly those in our Community Benefits Plan, and presents an opportunity to increase our efforts in helping all move forward financially.”

PNC issued the bond in line with its Sustainable Financing Bond Framework, which guides the company’s issues of green, social and sustainability bonds.

The framework has been reviewed and verified by Sustainalytics to confirm it is consistent with the current Sustainability and Bond Guidelines, Green Bond Principles and Social Bond Principles, as set out by the International Capital Market Association.

The social bond is the latest effort from PNC around economic empowerment, aiding education, enabling entrepreneurship and helping to end systemic racism.

Recently the group committed to an $88 billion four-year Community Benefits Plan, which promised $47 billion in residential mortgage and home equity loans to low and moderate income (LMI) people and minority borrowers, and in LMI communities and majority-minority census tracts.

It also pledged $26.5 billion in loans to small businesses in LMI communities and majority-minority census tracts, businesses with less than $1 million in revenue and small farms, and $14.5 million in community development loans and investments across all PNC markets.