Duke Energy Progress extends commitment to diversity and inclusion to financial sector
Duke Energy Progress, a subsidiary of Duke Energy, has successfully closed a $700 million debt offering with the help of seven diverse and minority-owned financial firms.
This transaction, which involved African American-, disabled-veteran-, Hispanic- and women-owned brokerage firms as co-underwriters to sell the notes, marks the fourth significant transaction since 2016 by a Duke Energy franchise that engaged diversity-owned financial institutions as it raises low-cost capital for investments in cleaner, smarter energy infrastructure. Duke Energy Ohio, Duke Energy Florida and Piedmont Natural Gas have also completed similar transactions.
“As we look at recent events across our nation, engaging banks led by minority-owned professionals has never been more important” said Steve Young, Duke Energy’s chief financial officer. “This transaction is yet another example of our long-standing commitment to diversity, inclusion and equity. Ultimately, this deal benefits our customers through capital and betters our communities as we support for minority-owned businesses.”
The joint bookrunners included Citigroup Global Markets Inc., Academy Securities, Inc., C.L. King & Associates, Inc., Great Pacific Securities, Loop Capital Markets LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Company, Inc. and Siebert Williams Shank & Co., LLC.
“By doing business with minority-owned banks, Duke Energy is making a statement in the business community and positioning itself as a pacesetter by providing joint bookrunner opportunities for diverse firms,” said Jim Reynolds, Chairman and CEO of Loop Capital Markets. “This isn’t the first time Duke Energy has taken deliberate steps to find ways to incorporate such firms into their transactions, and we appreciate the partnership. As an African-American owned financial services firm, we are proud of our expertise, caliber of service and the opportunity to expand our engagement with companies, large and small, and work in deal leadership roles on their capital-raising needs.”
Duke Energy Progress priced the bonds on Aug. 17 and closed the transaction on Aug. 20. Net proceeds will be used to repay outstanding borrowings under Duke Energy Progress’s term loan facility expiring in Dec. 2020.
“Being a part of the change in our communities involves companies, like Duke Energy, looking beyond internal education and culture changes,” said Young. “We must be intentional, going outside of our walls and expanding our working relationships to diverse suppliers, banks and more.”