Financial inclusion at heart of OneMain social bond

The company’s first social bond will fund loans to underserved communities.


OneMain Financial, the direct, wholly-owned subsidiary of US personal finance lender OneMain Holdings, Inc., is reinforcing its mission to improve the financial well-being of underserved Americans with the launch of its inaugural Social Bond. 

The issuance, a $750 million, five-year senior unsecured note, will provide access to safe, affordable credit for borrowers in credit-insecure and credit-at-risk communities as defined by the Federal Reserve Bank of New York. At least 75% of the loans funded by the social bond will be allocated to women or racial minority borrowers.

This unique transaction featured diverse broker-dealers in joint lead manager roles, highlighting the company’s innovative approach to connecting its capital markets and corporate social responsibility programs.  

BNP Paribas served as Left Lead Bookrunner, Billing & Delivery Agent and Joint Social Bond Structurer and Coordinator on the transaction, which was upsized as ESG-related bond offerings continue to attract strong investor demand.  

Expanding access to credit and capital

Millions of Americans cannot easily access credit from banks or credit unions and have limited savings. OneMain will use the social bond to provide responsible loans in underserved communities.

The proceeds of the bond will be used to finance or re-finance new or existing loans that are eligible under OneMain’s Social Bond Framework, advancing the company’s goal of enabling access to responsible financial products and services for vulnerable and/or historically underserved populations.

  • The loan portfolio will consist of loans to individuals residing with mailing addresses in counties identified as ‘Credit Insecure’ or ‘Credit-At-Risk’ by the Federal Reserve Bank of New York’s “Unequal Access to Credit: The Hidden Impact of Credit Constraints” report.
  • At least 75% of eligible loans will be given to women or racial minority borrowers (per the Federal protected classes definition of race).

The Social Bond Framework supports the following United Nations Sustainable Development Goals (UN SDGs): 1 (No Poverty), 8 (Decent Work and Economic Growth) and 10 (Reduced Inequalities). OneMain’s intention is to fully allocate the net proceeds of the bond within 12 months of issuance. S&P Global Ratings provided a second-party opinion (SPO) on OneMain’s social bond framework.

“OneMain’s first Social Bond is an important milestone in our mission to improve the financial well-being of hardworking Americans,” said OneMain Chairman and CEO Doug Shulman. “This bond is a testament to our commitment to financial inclusion and reinforces the work we are already doing to provide underrepresented communities with access to safe, affordable credit. We will continue to build our business around serving our customers responsibly, empowering them financially and making a positive social impact on our communities.”

Using diverse broker-dealers

OneMain leveraged its longstanding relationships with diverse broker-dealers to complete the transaction. This included firms that were service-disabled veteran-owned, woman-owned, Hispanic-owned and woman- and minority-owned.

We are delighted to support OneMain on this inaugural transaction, which demonstrates how social bonds can provide financial institutions with the tools to directly promote economic equality and opportunity for the communities in which they operate.

Joseph Malley, Head of Financial Institutions Coverage, BNP Paribas Americas

The social bond is just one aspect of OneMain’s broader mission to improve the financial well-being of their customers and promote financial inclusion in the communities they serve. In addition to personal loans, OneMain offers free financial education opportunities in the form of town halls, articles and blogs, and micro-courses on budgeting, savings and credit.

This transaction demonstrates the flexibility of sustainable finance solutions to help companies like OneMain accelerate and deepen their commitments to positive impact initiatives.

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