Forbright Launches to Accelerate Financing of the Clean Energy Transition
CHEVY CHASE, Md.–(BUSINESS WIRE)–Congressional Bank today announced its intent to rebrand as Forbright Bank, a full-service bank, commercial lender, and asset manager committed to accelerating the transition to a more sustainable economy and driving decarbonization. Forbright launches as the need to build a more resilient, sustainable, and low-carbon economy grows increasingly urgent, which is why the Bank will dedicate half of its assets to financing the companies, investors, operators, and innovators driving this change.
“The science is clear: Climate change is a fundamental risk to individuals, business, and our world, and we must move to a more sustainable, net zero carbon economy by 2050 to avoid its worst impacts,” said founder and Executive Chairman John Delaney. “Governments cannot fund this transition alone. The private sector needs a bank to help finance a brighter, greener, and more sustainable future, and Forbright will be an indispensable financial partner in advancing that goal.”
Delaney brings to this endeavor a unique mix of policy and private sector perspective. He founded and led two New York Stock Exchange listed financial services companies before the age of 40 and represented Maryland in the U.S. House of Representatives for six years. In 2017, he was named one of The World’s 50 Greatest Leaders by Fortune Magazine and a Climate Legislator of the Year by Citizens’ Climate Lobby.
Forbright’s approach will empower customers, partners, and stakeholders to seize the tremendous investment opportunities presented by decarbonizing the economy, which analysts estimate will result in an economic benefit to the world of $26 trillion by 2030. By connecting them with the capital and financing they need to make critical investments in the energy, transportation, manufacturing, and building sectors, the Bank will do its part in the worldwide effort to build the green economy of the future.
“We are redefining how a bank should operate in a changing world, guided by the principle that banking with a sustainability focus is best for our customers, our business, and society,” said Chief Executive Officer Don Cole. “Our national reach and our growing and well-established healthcare, lender finance, real estate, leveraged lending, and technology platforms, coupled with our ability to think creatively and execute quickly, result in tailored, reliable lending and banking solutions that enable our customers to grow and succeed.”
To drive the growth of its business in a safe and sound manner, and to add to its existing strong capital base, the Bank recently closed a $345 million capital investment through a private stock placement that is expected to enable up to $10 billion in new lending across its Sustainable Finance, Healthcare, Specialty, Real Estate, and Leveraged Lending businesses. The investment was led by funds and accounts managed by Centerbridge Partners L.P., Gallatin Point Capital LLC, Bayview Asset Management LLC, and BlackRock, Inc. The Bank also announced a significant partnership with Mosaic, a leading solar and energy-efficient home improvement financing platform, to facilitate $1.5 billion in new loans to homeowners and builders across the United States making the transition to clean solar energy and battery storage.
In connection with the capital investment, the Bank’s holding company Board of Directors now includes new members Donald Kohn, former Vice Chairman of the Federal Reserve, as well as Cliff Brokaw (Bayview Asset Management), Pam Chan (BlackRock), Steve Shafran and Eric Hoffman (Centerbridge Partners), and Jenevieve Mitchel (Gallatin Point Capital).
“Forbright is well positioned to demonstrate that a bank can participate in the historic investment opportunity associated with transitioning to a low carbon world,” said Lee Sachs, who previously served as Counselor to the Secretary of the Treasury and Head of the Financial Crisis Response Team under President Obama and is the co-founder of Gallatin Point Capital.
“We are pleased to support Forbright and its commitment to accelerating the transition to a sustainable, net zero economy,” added Pam Chan, Chief Investment Officer and Global Head of the Alternative Solutions Group at BlackRock.
“We are excited to anchor the investment in Forbright and believe the platform is very well positioned to become a large and important financial institution,” added Eric Hoffman, a Managing Director at Centerbridge Partners.
“I am proud to be part of an institution that will show the way to safe and sound financing of vital investments in our planet’s future,” added Donald Kohn, former Vice Chairman of the Federal Reserve.
In addition to direct lending, Forbright will catalyze additional capital for customers through the BancAlliance network of more than 250 community-based financial institutions who rely on its asset management expertise and insights. Forbright also will empower entities and individuals to direct their FDIC-insured deposits toward clean energy and sustainability-oriented loans through decarbonization-linked deposit products, allowing them to play a critical role in furthering the energy transition.
As a values-driven organization, Forbright will aim to hold itself accountable to responsible practices and a sustainable mindset. The Bank has implemented a Responsible Investment and ESG policy to embed its commitment to responsible and sustainable principles and practices across its businesses. The Bank is among only seven U.S. banks that have become a signatory to the U.N. Principles of Responsible Banking. It has pledged to ensure that its operations are net zero and is providing incentives to its team members to embrace sustainable practices in their lives. This approach reduces credit risk, presents enhanced lending opportunities, and prioritizes the markets of the future, serving the interests of customers, partners, investors, and society.
Additional elements of the new Forbright brand and visual identity will be revealed later this year as the Bank completes its legal transition to Forbright Bank. The Bank’s holding company will be named Forbright, Inc. For existing Bank customers, all account numbers, PINs, routing numbers, and other account information will remain exactly the same, and ATM cards, debit cards, credit cards, and checks will continue to function normally. The rollout of its new name will not affect the Bank’s normal business operations. Customers and partners will continue to receive the service they have come to expect from Congressional Bank as the brand is seamlessly transitioned and they are offered access to Forbright’s further enhanced suite of products and services.
For more information, visit www.forbrightbank.com.
Forbright Bank (www.forbrightbank.com) is a full-service bank, commercial lender, and asset manager headquartered in Chevy Chase, Maryland, that is committed to accelerating the transition to a sustainable, clean energy economy by financing the companies, investors, and innovators driving that change. With $3.5 billion of owned and managed assets, the Bank provides specialty lending and banking services to clients across the United States. Its Sustainable Finance, Healthcare, and Specialty Lending divisions provide nationwide lending products, including customized real estate loans, working capital, warehouse lines of credit, and forward loan purchase agreements. The Bank provides real estate loans, mortgage loans, and other business loans, as well as sophisticated and competitive deposit products, including those linked to decarbonization- and sustainability-oriented loans, to businesses and individuals through its Community Bank division. Its Alliance Partners subsidiary is an asset manager and lender focused on serving financial institutions by optimizing their asset strategies. Alliance Partners is the asset manager for BancAlliance, a network of more than 250 community-based financial institutions across the United States.
Forbright Inc.’s common stock is not listed on any exchange and is traded through individually negotiated transactions. Member FDIC as Congressional Bank. Congressional Bank is an equal housing lender and makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status.