How do Green Bonds affect equity in Black and minority communities?
Marcus Martin: Part of the important work that we do with ESG investments is understanding sustainability as it applies to positive outcomes from a capital markets and investment banking professional lens. We’re looking at creating a way in which both the bond issuer as well as the investing audience are able to combine those considerations and make the most meaningful and impactful investment.
A green bond falls under the Environmental category of ESG. Green bonds can be used to fund targeted projects that address climate change, including in Black and Brown communities across the country that are facing climate change related challenges. The racial equity bond we announced with Enterprise falls within the Social category of ESG advisory. The reason why this racial equity bond is so unique and potentially impactful is the ability to take parts of the green bond approach and applies it to some of the country’s biggest social challenges: such as building affordable housing and ensuring there is socioeconomic advancement and wealth creation among some of the nation’s best and brightest developers of color.
We are incredibly proud to participate with Enterprise, because they’re a strong mission-driven entity that also works directly with these types of organizations. It’s important for these experts to be the recipients of these types of social bond structures, which have a very direct impact and a very high level of positive outcomes when we’re able to package it all together.
In this particular case, we are focused on a framework that we’ll likely see again in the marketplace because of the brilliant nature of the issuer and their ability to understand how to create impact. We’re helping Enterprise further their mission and solve these social challenges with this social bond that’s designed with racial equity at the core.
How does U.S. Bank help further your mission at Enterprise?
Chatman: Having U.S. Bank on board is the beginning of what we hope will be a continued and ongoing partnership. The communities and the developers that we are looking to invest in have long been denied access to capital, so one effort, no matter how significant, won’t change that dynamic. We are grateful for U.S. Bank’s thought leadership and ability to create a unique capital structure for this type of activity to bring to the market. We will continue to look to them for more ways in which we can access capital and get it to the places and the people that need it most.
