PECO and its parent company, Exelon Corporation, have entered into new credit agreements with minority and community banks in the Philadelphia region and other regions where Exelon operates. This arrangement in the financial services arena is considered unique in utility industry efforts to expand outreach to minority and women-owned businesses.
Locally, the United Bank of Philadelphia served as a lead arranger for the $34 million credit facility for PECO, with JP Morgan Chase serving as the administrative agent, as part of an overall $123 million credit line for Exelon and its companies.
In a challenging economic climate, Craig Adams, PECO president and CEO, said these agreements provide PECO and Exelon with an additional source of credit at competitive prices while offering minority and community banks an opportunity to grow their relationships with Fortune 500 companies. Adams added that these agreements are part of PECO’s and Exelon’s ongoing efforts to engage minority-owned firms, demonstrate their commitment to diversity and inclusion in all business relationships, and provide greater opportunity for minority banks to participate in major transactions.
“This is the ninth consecutive year that United Bank of Philadelphia has served as co-arranger for the Exelon credit agreements,” said Evelyn Smalls, president and CEO of United Bank of Philadelphia. “This relationship directly benefits community banks and their ability to serve their customers, many of whom are small businesses. It also is a great example of how collaboration between Fortune 500 companies and community banks can serve as catalysts for economic growth in urban communities.”
“Supplier diversity is an important part of our diversity and inclusion strategy,” said Adams. “Diversity and inclusion are about increasing opportunities and ensuring broad access, not just in terms of how we hire, but as a fundamental way of doing business every day.”
“We are pleased to facilitate a relationship between minority and community banks and a large money center bank in order to accomplish an important business objective,” said Phil Barnett, PECO senior vice president, chief financial officer and treasurer. “This working partnership is unique, and we’re proud to have played a role.”
Last year, PECO spent $60 million with minority and women-owned businesses. With the addition of Constellation and BGE to the Exelon family of companies, Exelon expects its corporate spending with certified minority- and women-owned businesses to be approximately $700 million annually.
Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation (EXC). PECO serves 1.6 million electric and 494,000 natural gas customers in southeastern Pennsylvania and employs about 2,400 people in the region. PECO delivered 82.1 billion cubic feet of natural gas and 38.1 billion kilowatt-hours of electricity in 2011. Founded in 1881, PECO is one of the Greater Philadelphia Region's most active corporate citizens, providing leadership, volunteer and financial support to numerous arts and culture, education, environmental, economic development and community programs and organizations.
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