JPMorgan Chase Issues $1 Billion Inaugural Social Bonds

Rhea-AI Summary

JPMorgan Chase has successfully issued its inaugural social bond worth $1 billion. This issuance aligns with the Firm’s Sustainable Bond Framework and aims to support economic development in low- and moderate-income communities, focusing on affordable housing and education. The bond will be managed by minority and women-owned firms, reinforcing JPMorgan’s commitment to diversity. This initiative builds on a broader $30 billion commitment to enhance racial equity and economic recovery within underserved areas.

Positive

• Inaugural social bond issuance of $1 billion strengthens commitment to affordable housing.
• Focus on economic development in low- and moderate-income communities.
• Bond issuance managed by minority and women-owned businesses, promoting diversity.
• $30 billion commitment to advance racial equity and inclusive economic recovery.

Negative

• None.

JPMorgan Chase & Co. (NYSE: JPM) (“JPMorgan Chase” or the “Firm”) has completed the Firm’s inaugural social bond issuance of $1 billion aggregate principal amount of Fixed-to-Floating Rate Notes due 2025 (CUSIP: 46647PBY1) (the “Notes”). Under the Firm’s Sustainable Bond Framework (the “Framework”), the Firm may allocate an amount equal to the net proceeds of this issuance to activities that promote economic development by financing small businesses in low- and moderate-income (“LMI”) geographies, affordable housing and projects that promote access to education and health care in LMI geographies. The Firm expects the proceeds of this social bond issuance to be allocated to fund affordable housing projects. Building on the Firm’s engagement with diverse suppliers, the co-managers for the bond offering consisted solely of Minority and Women-Owned Business Enterprise and Service-Disabled Veteran-Owned Business firms.

JPMorgan Chase’s inaugural social bond issuance builds on the Firm’s inaugural green bond issuance and will support its longstanding commitment to affordable housing. For example, as part of the Firm’s $30 billion commitment to help advance racial equity and support an inclusive economic recovery through business and philanthropic capital, JPMorgan Chase will help promote and expand affordable housing in underserved communities.

“JPMorgan Chase is committed to using innovative financing strategies to support a sustainable and inclusive recovery,” said Marisa Buchanan, Head of Sustainability at JPMorgan Chase. “With a focus on boosting affordable housing, our inaugural social bond issuance builds on our leadership in the sustainable bond market and our strategy to use our business expertise to create opportunity for underserved communities.”

Sustainable Bond Framework

JPMorgan Chase’s inaugural social bond issuance is part of its firmwide sustainability strategy and was issued in accordance with the JPMorgan Chase & Co. Sustainable Bond Framework. The Framework includes more details on JPMorgan Chase’s sustainable bond issuance strategy and eligible project categories. It is available at www.jpmorganchase.com under Who We Are, Governance, Environment, Social and Governance (ESG) Information.

History in the Sustainable Bond Market and Sustainable Development

JPMorgan Chase’s social bond issuance builds on the Firm’s experience and leadership in the sustainable bond market, including its inaugural green bond issuance in 2020. Marilyn Ceci, Managing Director and Global Head of ESG Debt Capital Markets, currently serves on the Executive Committee that oversees the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines. In 2020, the Firm’s broker-dealer subsidiaries underwrote $23.7 billion in green, social, and sustainability bonds.

JPMorgan Chase is committed to creating a more sustainable future for its employees and the customers and communities that it serves. In 2020, the Firm expanded its sustainability efforts by announcing its goal to facilitate $200 billion in financing in 2020 for transactions that support climate action and advance the United Nations Sustainable Development Goals. Additionally, in October 2020, the Firm committed to adopting a financing commitment aligned with the goals of the Paris Agreement. JPMorgan Chase has also supported market-based policy solutions to address carbon emissions, both through the Climate Leadership Council and the Firm’s membership in Business Roundtable. More information on how JPMorgan Chase is advancing sustainable solutions is available in the Firm’s 2019 ESG Report and on its sustainability webpage.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities, nor shall there be any sale of the Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.4 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

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FAQ

What is JPMorgan's recent social bond issuance amount and purpose?

JPMorgan Chase issued a $1 billion social bond to support affordable housing and economic development in low- and moderate-income communities.

When did JPMorgan Chase complete its inaugural social bond issuance?

JPMorgan Chase completed its inaugural social bond issuance recently, as announced in February 2021.

How will the proceeds from the social bond be allocated?

The proceeds will be allocated to activities that promote affordable housing, education, and economic development in underserved communities.

What is the ticker symbol for JPMorgan Chase?

The ticker symbol for JPMorgan Chase is JPM.

Which firms managed the bond offering for JPMorgan's social bond?

The bond offering was co-managed solely by Minority and Women-Owned Business Enterprises and Service-Disabled Veteran-Owned Business firms.