BGE Credit Agreements Extend Relationships with Minority and Community Banks
BALTIMORE (Baltimore Gas and Electric Company (BGE) and its parent company, Exelon Corporation, have arranged $123 million in credit lines with 31 minority and community-owned banks in BGE’s service area and other regions where Exelon operates. In a still challenging economic climate, these transactions help support small businesses and keep dollars in the local economy.) –
Exelon’s minority and community banking program, which began in 2003, remains unique in the energy industry. Locally, the Harbor Bank of Maryland serves as a lead arranger for the credit facility for BGE. Administered by JP Morgan Chase since its inception, the program has more than tripled in credit facility size and quadrupled the number of participating banks.
“In a challenging economic climate, these agreements provide BGE and Exelon with an additional source of credit at competitive prices, while offering minority and community banks with an opportunity to grow their relationships withFortune 500 companies,” said Kenneth W. DeFontes Jr., president and chief executive officer for BGE. “These agreements are part of BGE’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.”
“We are pleased to facilitate this unique opportunity to strengthen the relationship between minority and community banks and to provide a greater opportunity to participate in major transactions, while helping to impact the banks’ bottom line,” said Carim Khouzami, senior vice president, chief financial officer and treasurer for BGE. “This program provides us with greater financial flexibility, while also supporting the banks that are helping to build stronger communities where we live and work. We hope that sustaining and expanding our relationships with minority-, women- and community-owned businesses will have a ripple effect and help stimulate economic development in the communities we serve.”
“BGE has a strong history of developing strategic partnerships with diverse suppliers, and together with Exelon and through programs such as our Focus 25 program, which will assist select minority-owned businesses and guide them through BGE’s procurement process, the company is making even greater strides in increasing opportunities for minority-owned businesses,” added DeFontes.
Exelon and BGE have demonstrated a commitment to supplier diversity and have made it a critical part of the company’s overall supply chain strategy. In 2012, BGE spent $116 million with diversity certified suppliers (minority-, women- or veteran-owned suppliers); equaling 14 percent of its supply contracting totals. BGE spent $32 million, or 28 percent, of the total spend with diversity-certified prime contractors and service providers based in Maryland. Exelon’s corporate spending with certified minority- and women-owned businesses reached more than $750 million in 2012.
For more information on BGE’s commitment to diversity and inclusion, visit bge.com.