ComEd Extends Credit Agreements Totaling $34 Million with Minority and Community Banks
CHICAGO, Oct. 25, 2012 /PRNewswire/ -- ComEd and its parent company, Exelon, have entered into new credit agreements totaling $34 million with 22 minority and community banks in ComEd's service territory and other regions where Exelon operates. In a recovering economy, these agreements will provide the utility with additional sources of credit at competitive prices and foster economic development in urban communities.
The $34 million credit agreement is part of Exelon's minority and community banking program. Now in its tenth year, this program is the only one of its kind in the energy industry. It offers minority, women-owned and community banks incremental business in the form of deposits, and the increase in their assets helps the banks generate more business and provide more services to their communities.
"We are pleased to invest in the diverse communities we serve," said Anne Pramaggiore, president and chief executive officer, ComEd. "Not only is this good business, it is the right thing to do. We believe our relationships with minority-owned and community-based businesses and other diverse suppliers can have a ripple effect in the community and help generate economic development among underrepresented groups."
Administered by JP Morgan Chase, the lead arranging banks for ComEd's $34 million credit agreement are Seaway Bank and Trust Company in Chicago and Riverside Community Bank in Rockford, Ill. This year marks the fifth consecutive year that Seaway Bank and Trust Company has served as co-arranger for the credit agreement.
"As a community bank, we are honored to have a lead role in arranging a credit facility for a large company like ComEd and its parent company Exelon," said Arlene Williams, executive vice president, Seaway Bank and Trust Company. "Having a credit agreement with a large company enhances our reputation in the community and has a direct impact on our bottom line."
Joseph R. Trpik, ComEd senior vice president and chief financial officer, added, "ComEd is pleased to continue our transactions with minority and community banks. These transactions help support small businesses and keep dollars in the local economy."
The partnerships between ComEd and the community and minority banks go beyond the credit agreements. They offer the banks an opportunity to expand their business into other areas, as well as to seek business from other large companies. For example, program participant AztecAmerica Bank now offers low-income community members the opportunity to purchase gift certificates for ComEd electricity service.
ComEd has a strong and growing commitment to supplier diversity and has made it a critical part of its overall supply chain strategy. In 2011, ComEd spent $177 million with minority- and women-owned businesses, representing 18 percent of ComEd's total outlay.
Commonwealth Edison Company (ComEd) is a unit of Chicago-based Exelon Corporation (NYSE: EXC), the nation's leading competitive energy provider, with approximately 6.6 million customers. ComEd provides service to approximately 3.8 million customers across northern Illinois, or 70 percent of the state's population.