Bank holding co Forbright issues USD-125m green bond

Forbright Inc, the bank holding company for Maryland-based commercial lender Forbright Bank, said on Thursday that it has completed the private placement of an inaugural USD-125-million (EUR 111m) green bond.

The fixed-to-floating rate subordinated notes are due on January 1, 2031. The proceeds from their issuance will be injected into the bank as capital and used to fund or refinance projects aimed at driving decarbonisation and speeding up the shift to a more sustainable economy, the announcement says. Financed projects will focus on the renewable energy and energy efficiency categories.

Forbright, recently rebranded from Congressional Bancshares Inc, noted that it is the first US bank holding company with less than USD 150 billion in consolidated total assets to issue a bond with proceeds dedicated to financing the clean energy transition.

Keefe, Bruyette & Woods, A Stifel Company, and PNC FIG Advisory, part of PNC Capital Markets LLC, served as placement agents for the private placement.

(USD 1.0 = EUR 0.882)

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