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Morgan Stanley Continues Commitment to Sustainable Investing with Social Bond to Support Affordable Housing

·6 min read

Morgan Stanley (NYSE: MS) announced today the issuance of a $1 billion social bond to support affordable housing projects, the latest step in the Firm’s ongoing strategy to advance market-based solutions to address sustainability challenges. This issuance follows the inaugural green bond issued by Morgan Stanley in 2015, which supported various renewable energy and energy efficiency projects.

Morgan Stanley intends to allocate an amount equal to the net proceeds of the social bond to affordable housing projects, which aim to provide housing at affordable rates to low- or moderate-income individuals and/or families in the United States.

"As the COVID-19 pandemic has unduly burdened many of our most vulnerable communities, affordable housing for individuals and families has never been more critical," said Morgan Stanley Treasurer John Ryan. "The proceeds from this offering will help deliver and preserve housing solutions across the United States, and empower investors to make a positive social impact."

Morgan Stanley’s inaugural social bond is part of the Firm’s decade-long leadership in sustainable finance, which includes the Morgan Stanley Institute for Sustainable Investing, established in 2013 to accelerate the mainstream adoption of sustainable investing. The Firm also has a track record of issuing and supporting innovative bonds that raise capital for positive environmental and societal impact. In 2013, the Firm helped support the first ever corporate green bond and in 2017, the Firm priced the first public market bond deal for a community development financial institution (CDFI) to help advance economic opportunity in underserved neighborhoods around the United States.

"Morgan Stanley has a long standing commitment to harnessing the capital markets to strengthen communities and create opportunity," said Tom Nides, Managing Director and Vice Chairman of Morgan Stanley. "Financial innovations like the Morgan Stanley Social Bond are an important part of the solution to bring capital at scale to address critical challenges, including the growing need for affordable housing in our communities."

Morgan Stanley's Social Bond Framework, designed in-line with the International Capital Market Association’s Social Bond Principles, 2020, outlines the process through which the projects are selected, with the aim of helping to ensure that the Morgan Stanley social bond operates with high levels of transparency and disclosure. Morgan Stanley appointed an independent second-party opinion provider to review the Social Bond Framework and this social bond. Project updates and impact-focused reporting for this issuance will be made available on a dedicated website.

About Morgan Stanley

Morgan Stanley is a leading global financial services firm providing investment banking, securities, investment management and wealth management services. With offices in more than 41 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.

About the Institute for Sustainable Investing

The Morgan Stanley Institute for Sustainable Investing (The Institute) builds scalable finance solutions that seek to deliver competitive financial returns while driving positive environmental and social impact. Founded in 2013, The Institute creates innovative financial products, thoughtful insights and capacity building programs that help maximize capital to create a more sustainable future. For more information about the Morgan Stanley Institute for Sustainable Investing, visit www.morganstanley.com/sustainableinvesting.

Please note that there is currently no legal, regulatory or similar definition of what constitutes a "social" bond or as to what precise attributes are required for a particular issuance to be defined as "social." Without limiting any of the statements contained herein, Morgan Stanley makes no representation or warranty as to whether a bond constitutes a social bond, unless otherwise specified by Morgan Stanley, or whether a bond conforms to investor expectations or objectives for investing in social bonds. For information on characteristics of a specific social bond, use of proceeds, a description of applicable projects and/or any other relevant information about the bond, please reference the offering documents for the bond.

All material in this press release prepared by Morgan Stanley Smith Barney LLC and/or Morgan Stanley & Co. LLC, Members SIPC (hereinafter "Morgan Stanley") has been prepared for informational purposes only and is not a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Unless otherwise stated, the material was not prepared by the Morgan Stanley Research Department and is not a Research Report as defined under FINRA regulations. The material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who read it. Readers should determine, in consultation with their own investment, legal, tax, regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences, of any transaction or strategy referenced in any materials. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives.

Morgan Stanley, its affiliates and Morgan Stanley Financial Advisors do not provide tax, accounting or legal advice. Individuals should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving legal matters. The material may contain forward looking statements and there can be no guarantee that they will come to pass.

Information contained in the material is based on data from multiple sources and Morgan Stanley makes no representation as to the accuracy or completeness of data from sources outside of Morgan Stanley. References to third parties contained herein should not be considered a solicitation on behalf of or an endorsement of those entities by Morgan Stanley. Morgan Stanley is not responsible for the information contained on any third party web site or your use of or inability to use such site, nor do we guarantee its accuracy or completeness. The terms, conditions, and privacy policy of any third party web site may be different from those applicable to your use of any Morgan Stanley web site. The opinions expressed by the author of an article written by a third party are solely his/her own and do not necessarily reflect those of Morgan Stanley. Professional designations mentioned in the articles may or may not be approved for use at Morgan Stanley. The information and data provided by any third party web site or publication is as of the date of the article when it was written and is subject to change without notice.

© 2020 Morgan Stanley. All rights reserved.

CRC 3294579 10/2020

View source version on businesswire.com: https://www.businesswire.com/news/home/20201021005884/en/

Contacts

Morgan Stanley Media Relations: Gaston Terrones Dimant, Gaston.Terrones.Dimant@morganstanley.com