Prudential Financial Introduces Sustainability-Linked Revolving Credit Facility
July 29 2021 - 8:40AM
Business Wire
— More deeply aligns Prudential’s ESG and financial
frameworks
— First-of-its-kind transaction for a major U.S.
insurer
Prudential Financial, Inc. (NYSE: PRU) today announced that it
is more deeply integrating its environmental, social and governance
(ESG) commitments into the company’s liquidity framework through
the renewal of its five-year $4 billion credit facility, which now
links the company’s borrowing costs directly to its progress in
achieving its sustainability targets.
The credit facility, the first of its kind for a major U.S.
insurer, includes a pricing structure which adjusts Prudential’s
borrowing cost based on the company’s success in reducing
greenhouse gas emissions as well as increasing the diversity of its
senior leadership.
“We are committed to ensuring that sustainability runs through
everything we do,” said Margaret “Peggy” Foran, chief governance
officer and corporate secretary for Prudential Financial. “This
transaction is another important step forward to integrate our ESG
and liquidity framework, and to ensure greater accountability
around our commitments for all of our stakeholders.”
The sustainability-linked revolving credit facility includes
terms which incentivize Prudential to achieve previously stated
commitments including:
- Reducing domestic greenhouse gas emissions.
- Increasing the diversity of senior leaders.
These targets align directly with Prudential’s Global
Environmental Commitment to reduce domestic emissions, and with one
of three inclusion & diversity (I&D) talent goals outlined
in the 2021 Proxy Statement. Furthermore, the company’s I&D
goals drive progress toward the Nine Racial Equity Commitments
announced one year ago.
“We continually look for opportunities to align our liquidity
framework with Prudential’s broader commitment to sustainability,”
said Nandini Mongia, treasurer of Prudential. “This credit facility
is the natural next step in our journey.”
The transaction extends Prudential’s industry leadership
position in sustainable finance transactions. In March 2020, the
company issued an inaugural green bond of $500 million,
representing the first green bond issuance of its kind by a major
U.S. life insurer.
The credit facility is provided by a consortium of 22 leading
global financial institutions, with BNP Paribas and Bank of America
serving as Co-Sustainability Structuring Agents and JPMorgan Chase
as Administrative Agent.
Forward-Looking Statements
Certain of the statements included in this release, including
those related to Prudential’s environmental, social and governance
initiatives and targets, constitute forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995. Forward-looking statements are made based on
management’s current expectations and beliefs concerning future
developments and their potential effects upon Prudential Financial,
Inc. and its subsidiaries. Prudential Financial, Inc.’s actual
results may differ, possibly materially, from expectations or
estimates reflected in such forward-looking statements. Certain
important factors that could cause actual results to differ,
possibly materially, from expectations or estimates reflected in
such forward-looking statements can be found in the “Risk Factors”
and “Forward-Looking Statements” sections included in Prudential
Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports
on Form 10-Q. Prudential Financial, Inc. does not undertake to
update any particular forward-looking statement included in this
release.
For more company news and information on sustainability
initiatives, visit prudentialesg.com.
About Prudential
Prudential Financial, Inc. (NYSE: PRU), a global financial
services leader and premier active global investment manager with
more than $1.5 trillion in assets under management as of March 31,
2021, has operations in the United States, Asia, Europe, and Latin
America. Prudential’s diverse and talented employees help make
lives better by creating financial opportunity for more people.
Prudential’s iconic Rock symbol has stood for strength, stability,
expertise and innovation for more than a century. For more
information, please visit news.prudential.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210729005590/en/
MEDIA: Julie Laskin, (973) 802-3975,
julie.laskin@prudential.com
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