PNC Financial Services Group announced the closing of its latest Green Bond issuance. The proceeds will fund eligible projects that promote a transition to a low-carbon economy and offer sustainability benefits across four categories aligned with the United Nations sustainable development goals, including renewable energy, energy efficiency green buildings and clean transportation. PNC issued its inaugural green bond in 2019 and its first social bond in 2021.

“We are committed to supporting the transition to a low carbon economy while balancing financial priorities and environmental considerations,” Michael P. Lyons, executive vice president and head of Corporate & Institutional Banking at PNC, said. “This green bond issuance builds on existing initiatives already underway, including our recently enhanced $30 billion environmental finance commitment, which we increased by 50% in response to escalating client demand. We’re looking forward to building on this momentum and supporting our clients as they consider financing options for their sustainability goals.”

The transaction was well received by investors, with demand well in excess of the $1.25 billion in issued notes. The four-year bond, which is callable in three years, will pay interest semi-annually at a fixed rate of 4.758% for the first three years and quarterly at a floating rate thereafter. PNC Capital Markets was the lead green structuring agent on the deal which also included two veteran, minority or women-owned broker dealers as co-managers – Academy Securities and Siebert Williams Shank & Co.

“We were very pleased with the reception of our latest green bond offering,” David Kahn, corporate treasurer at PNC, said. “Our significantly oversubscribed issuance demonstrated investor enthusiasm for this asset class and a desire to support the financing of green projects that promote a transition to a lower carbon economy, while also affirming investor confidence in PNC and its credit quality.”