Georgia Power issues Equality Progress Sustainability Bonds
Georgia Power issued $1.5 billion in senior unsecured bonds, including Equality Progress Sustainability Bonds, for investments to help it improve its energy delivery, boost local communities, and drive economic inclusion.
About half of this amount, $800 million, is through the Equality Progress Sustainability Bonds (EPSBs), the first-ever issued by a corporate borrower. EPSBs are designed to advance racial equality, economic opportunity, and environmental sustainability. An amount equal to at least 50 percent of the net proceeds will be allocated to primarily benefit minority- and/or female-owned suppliers.
Bank of America first introduced Equality Progress Sustainability-labeled notes in 2020. BofA Securities also served as Georgia Power’s Sustainability Structuring Agent. The social benefits of this landmark EPSB align with Southern Company’s “Moving to Equity” framework established in 2020, as well as Georgia Power’s focus on advancing racial equity and social justice.
“At Georgia Power, our commitment to helping further racial equity and social justice in the state of Georgia means we are constantly looking for new and different ways we can support these kinds of efforts, and this bond is a great example of how we’re doing just that,” Aaron Abramovitz, chief financial officer for Georgia Power, said. “We’re pleased investors and the marketplace value how important the issuance of this kind of bond is and recognize how impactful this can be for minority- and female-owned businesses. Being the first corporate issuer to issue this type of bond is something we are very proud of.”
Georgia Power, a subsidiary of the Southern Company, serves 2.7 million customers across the state. The company is committed to deploying resources to advance inclusivity, equity, and social justice. It has a company-wide goal to increase its percentage of spend with diverse suppliers and minority suppliers to 30 percent and 20 percent, respectively, of overall spending by 2030
“This inaugural corporate Equality Progress Sustainability transaction continues the leadership in ESG-bond issuances of the Southern Company system, which completed one of the first corporate issuances of an ESG-themed bond in 2015,” Andrew Karp, head of ESG Advisory & Financing Solutions at Bank of America, said. “We applaud Georgia Power for being the first corporate to align its bond issuance with the Equality Progress Sustainability Bond label and for using the capital markets to support and advance its sustainability goals. We hope interest in this theme continues to build in the market.”
Siebert Williams Shank & Co. — a leading national women- and minority-owned investment banking firm — was included as a joint book-running manager. BofA Securities, Mizuho Securities USA, MUFG Securities Americas, PNC Capital Markets, Scotia Capital (USA), and Truist Securities also served as joint book-running managers.
