Ford Foundation has announced the pricing and sales of $1 Billion of aggregated principal Social Bonds, which would help to support the organizations and companies significantly affected by the Covid-19 pandemic. The company has added that the bond includes 30-year and 50-year maturities at a fixed rate of 2.415% and 2.815% per annum.
The foundation has further added that the net proceeds of the Social Bonds will enable the company to pay out the 10% of its total endowment in 2021 and 2021. The foundation has further added that it is the primary goal of the foundation to strengthen and stabilize those specific enterprises and organizations that are facing tough economic conditions amid Covid-19 pandemic.
Sally Bednar of Wells Fargo Securities said, “We’ve rarely seen investors both in the U.S and around the world, respond with such enthusiasm to a designated social bond offering of this kind. The Ford Foundation’s Social Bonds began gaining momentum as a ‘must have’ for mission-driven, ESG investors in the U.S. bond market resulting in nearly $3.5 billion of orders during the first week of the marketing process.”
“The low yields and the successful, rare, 50-year maturity achieved through the bond sale are a strong indication of investor confidence in the Ford Foundation’s stature in the private foundation space, its mission and investors’ appetite for securities with a positive ESG and, in particular, social impact. The 50-year bond maturity is a first of its kind for a U.S. private foundation,” Sally Bednar added.
President of the Ford Foundation, Darren Walker said, “We’re thrilled with the phenomenal response to our offering which generated an initial subscription rate of 5.8X the value of the initial $1 billion social bond issuance. There are 114 investors, many of which were socially mindful, and recognize the economic and societal ramifications of COVID-19 for the nonprofit sector, and Ford Foundation’s unprecedented effort to help sustain these organizations at a critical time in our nation’s history.”
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