Bond Supports Social & Environmental
Projects in New England & New York
BOSTON, July 10,
2023 /PRNewswire/ -- Berkshire Hills Bancorp,
Inc. (NYSE: BHLB) ("Berkshire" or
the "Company"), announced today that proceeds from its
inaugural sustainability bond have been allocated to projects
resulting in the creation of 330 units of affordable and workforce
housing along with more than 200,000 square feet of green building
development. Berkshire's
Sustainability Bond Report, released in conjunction with today's
announcement, demonstrates how proceeds were allocated to support
affordable housing, workforce housing, green building and financial
access and inclusion projects in communities across New England and
New York.
In June 2022, Berkshire became the first public U.S.
community bank holding company with under $150 billion in total assets to issue a
Sustainability Bond. The $100 million
issuance of its 5.50% fixed-to-floating rate subordinated notes due
2032 was used to finance or refinance new or existing social and
environmental projects consistent with its Sustainable Financing
Framework.
"Berkshire Bank consistently seeks to maximize value creation
for our customers, employees, shareholders and communities as we
progress further toward becoming a high-performing, leading
socially responsible community bank," stated Nitin Mhatre, Berkshire CEO. "Our sustainability
bond reflects this commitment in practice as it helped expand our
universe of investors and deliver a positive impact to our
communities."
Highlights of the projects supported by Berkshire's Sustainability Bond
include:
- Affordable & Workforce Housing: Approximately 41% of
the bond proceeds were allocated to the development of 330 units of
affordable and workforce housing in Massachusetts, New
York and Connecticut. These
projects are expected to provide housing at a rate below the
prevailing market rate to individuals and families at or below 60%
of the Area Median Income ("AMI") for affordable units and between
60%-80% of the AMI for workforce units.
- Green Buildings: Approximately 33% of the bond proceeds
were allocated for the construction of more than 200,000 square
feet of green buildings in Massachusetts and New York whose projects are expected to
achieve LEED Gold or Platinum, Net Zero emissions and/or are
expected to achieve greenhouse gas emissions performance in the top
15% of their municipal boundaries.
- Financial Access & Inclusion: 26% of the bond
proceeds were allocated to small businesses located in low-moderate
income and/or majority minority census tracts that created jobs,
along with the redevelopment and revitalization of a former
industrial site within a low-income neighborhood that helped
attract new and retain existing businesses and residents.
"The allocation of our inaugural sustainability bond issuance is
helping to accelerate our impact and further empower the potential
of people and businesses across our footprint. By aligning our
capital strategy with our sustainability objectives, we're able to
deliver value for our shareholders, innovative solutions for our
customers and a net-positive impact for our communities," added
Gary Levante, SVP, Corporate
Responsibility at Berkshire.
All of the proceeds from the bond were allocated in alignment
with Berkshire's Sustainable
Financing Framework. Sustainalytics, a Morningstar Company, and the
global leader in high-quality ESG research, ratings, and data,
independently verified that Berkshire's Sustainable Financing Framework
"is credible and impactful and aligns with the International
Capital Market Association's (ICMA) Sustainability Bond Guidelines
2021, Green Bond Principles 2021 and Social Bond Principles 2021"*.
The subordinated Sustainability Bond issuance also received an
investment grade rating of Baa3 from Moody's Investors Service**.
Berkshire's full Sustainability
Bond Report is available online at
berkshirebank.com/sustainable-finance.
Since its founding in 1846, Berkshire has helped finance and innovate
businesses, create jobs, grow the economy, and improve the overall
quality of life for the people and places its stakeholders care
about most. The Company is well known for its commitment to
sustainability, equity and social responsibility highlighted by
Berkshire's history of
philanthropy, its multi-year BEST Community Comeback program, and
its Center for Women, Wellness and Wealth.
ABOUT BERKSHIRE HILLS
BANCORP
Headquartered in Boston,
Berkshire Hills Bancorp (NYSE:BHLB) is the parent
of Berkshire Bank. Founded in 1846, the Bank's vision is to be
a high-performing leading socially responsible community bank. It
empowers the financial potential of its stakeholders by making
banking available where, when, and how it's needed through an
uncompromising focus on exceptional customer service, digital
banking, and positive community impact. Providing a wide range of
financial solutions through its consumer banking, commercial
banking and wealth management divisions, the Bank has approximately
$12.3 billion in assets and a
community-based footprint of 100 financial centers in Massachusetts, New
York, Vermont, Connecticut, and Rhode Island. Named one of America's Most
Trusted Companies by Newsweek and America's Best Midsize
Employers by Forbes, Berkshire is also listed in the Bloomberg
Gender-Equality Index and a Best Place to Work for LGBTQ+ Equality.
To learn more, follow us on Facebook, Twitter, Instagram, and
LinkedIn.
*Note Regarding Second Party Opinion
Sustainalytics' second party opinion is provided for
informational purposes only and does not constitute an endorsement
of any securities, product or project, does not constitute
investment or financial advice, and does not represent any type of
credit or securities rating or an assessment of the issuer's
economic performance, financial obligations nor of its
creditworthiness.
**Note Regarding Rating
A rating is not investment or financial advice and is not a
recommendation to buy, sell or hold securities. Ratings may be
subject to revision or withdrawal at any time by the assigning
rating organization. Each rating agency has its own methodology for
assigning ratings and, accordingly, each rating should be evaluated
independently of any other rating.
Investor
Contact
Kevin Conn
Investor
Relations
617.641.9206 KAConn@berkshirebank.com
|
Media
Contact:
Alicia
Jacobs
Corporate
Communications
413.242.6540
Ajacobs1@berkshirebank.com
|
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SOURCE Berkshire Hills Bancorp, Inc.