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February 16, 2021 (CultureBanx) Wall Street giant Citigroup is exclusively working with four Black-owned investment firms for a strategic $2.5 billion bond issuance. The bonds which were priced last month will be distributed by Blaylock Van, CastleOak Securities, Global Oak Capital Markets, and Loop Capital Markets. Will this move by the banking giant actually reinforce its commitment to creating racial equity in the capital markets?
Why We Need To Know:
The bond deal, done in commemoration of Dr. Martin Luther King Jr. Day, marks the second time in recent weeks that a large U.S. financial services firm has made such a move. For this transaction, Citi issued a $2.5 billion six-year non call 5-year fixed-to-floating rate note indexed to SOFR. This move could further help Citi as it looks to strengthen its expansion of core business activities with minority-owed broker dealers, and depository institutions. “Minority-owned broker dealers, Black-owned firms in particular, have historically and largely been shut out of the capital markets. Yet, recent data shows that investing in these firms is good business,” Citi Chief Financial Officer Mark Mason said in a statement. Mason is among the top Black executives in the industry. Since 2015, Citi has tapped more than 30 firms owned by underrepresented groups for bond issuances totaling more than $150 million. A recent GPS report from Citi found that the U.S. GDP could increase by $5 trillion dollars over the next five years if the key racial wealth gaps for African Americans across housing, wages, education and investments are closed today.
SOURCE:
https://link.blackamericaweb.com/click/22954414.39889/
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