Citigroup – Allstate Hires Minority-Solely Banks for Bond Sale
In a significant November bond sale, Allstate Corp. employed solely funding banks owned by minorities, ladies, or veterans. The transfer, introduced by Allstate on Nov. 19, represents the most important company deal to be managed solely by such monetary establishments.
The insurance coverage large has additionally introduced that it’s planning to double its buying and selling quantity with numerous banks in 2021.
Key Takeaways
- In a November 2020 bond providing, Allstate selected to work solely with minority-, women-, and veteran-owned funding banks.
- Citigroup and Verizon have additionally carried out current bond choices with main participation by minority-owned banks.
- Allstate’s $1.2 billion providing is getting used to assist finance the acquisition of Nationwide General Holdings Corp., one other auto insurer.
Verizon and Citicorp Have Made Comparable Strikes
Allstate isn’t the primary main firm to interact minority-, women-, and veteran-owned companies for enormous offers. In September, telecommunications large Verizon made an providing worth $1 billion of its inexperienced bonds, which is able to assist the corporate transition to utilizing extra renewable power. Two of the 4 lead underwriters have been African-American-owned funding banks.
Then in October, Citigroup mentioned it partnered solely with women-, veteran-, and minority-owned broker-dealers within the sale of $2.5 billion in social bonds. The bonds shall be used to assist create inexpensive housing for low- and moderate-income People.
Allstate’s sale of $1.2 billion in company bonds was used to assist finance the acquisition of the auto insurer Nationwide General Holdings Corp., a $four billion deal that’s scheduled to shut in early 2021.
Concerned within the providing have been Loop Capital Markets, Academy Securities, Samuel A. Ramirez & Co., Siebert Williams Shank & Co., AmeriVet Securities, Cabrera Capital Markets LLC, C.L. King & Associates, Penserra Securities LLC, and R. Seelaus & Co. LLC.
The Starting of a Development?
These strikes by Allstate, Citigroup, Verizon, and others have helped make room for numerous banks to have a seat on the desk. Traditionally, corporations have labored with massive banks on such offers, partly as a result of they will lend for small charges.
The choice by main firms to work extra with minority-owned companies comes at a time when racial fairness points are getting extra consideration than they’ve previously. Whereas it’s a small step within the grand scheme of issues, it’s an necessary one.
