Barclays Drops Its Role as Lead Underwriter in Prison Bond Sale

Full article can be found here, excerpt below

April 19, 2021: Barclays abandoned its role as lead underwriter in a municipal bond sale meant to finance the construction of two new prisons in Alabama connected to CoreCivic, Bloomberg reported Monday. Activists and investors said the deal was “in direct conflict” with the bank’s 2019 pledge to stop financing private-prison companies….

Barclays’s decision to underwrite a bond offering by prison operator CoreCivic is “in direct conflict” with a pledge the bank made two years ago, about 30 activists and investors wrote in a letter to the U.K.-based lender, the Financial Times reported Thursday….

“You’ve already taken the stance, the right stance, that private prisons and profiting from a legacy of slavery is bad,” Renee Morgan, a social justice strategist with asset manager Adasina Social Capital, told the Financial Times. “But then you’re finding this odd loophole in which to give a platform to a company to continue to do business.”