FOR IMMEDIATE RELEASE
April 16, 2021

Contact:
Nancy Treviño | (786) 201-8958 | [email protected]

Investors, Business Leaders, and Advocates Demand Barclays Kill Prison Muni Bond Sale

Barclays delays Prison MUNI Bond sale after cutting the total par amount by approximately $200 million and still can’t find buyers

(New York, NY) –– A day after a group of impact investors, business leaders, and social
justice advocates called on global investors to refuse to purchase a $630 million taxable municipal bond offering by the Alabama Department of Corrections (ADOC) through the Wisconsin Public Finance Authority, Barclays, who led the financing, announced it was delaying the sale. Proceeds from the deal would be used to build two prison facilities. CoreCivic, the private prison firm, with a very long and troubled human rights history, would be the builder and owner of the facilities and ADOC, itself with a checkered history of prison management, will operate the prisons.

Leaders demand ‘delay’ is not enough — invest $630M toward more effective forms of public health, safety, and infrastructure that create economic prosperity rather than exacerbate harm.

This unprecedented coalition of groups are demanding the project be killed rather than just delayed. They are calling on the state and Barclays to work with the community to invest in more efficient, cost effective public health and safety models that spur equitable economic growth rather than exacerbate more harm. This is especially important given not a single Alabama citizen or legislator has had their voice heard throughout this process according to The Alabama Communities Not Prisons coalition.

“Private prisons are the worst kind of racket — dangerous, corrupt, and inhumane. Wisconsin’s Public Finance Authority (PFA), Alabama’s Governor, and Barclays bank should never be in the business of caging people and separating families for profit,” said Matt Nelson, Executive Director of Presente.org. “The private prison industry is toxic to governments, finance, and the public at large. Barclays’ decision to delay their municipal bond sale to finance private prisons in Alabama is a step in the right direction. However, we need them to live up to their commitment to stop financing private prisons, and along with the PFA, they need to cancel the deal altogether.”

“The State of Alabama and Barclays are choosing to make a long term investment that will impede their economic prosperity and exacerbate harm to Black and Brown communities rather than invest that $630M in more effective and cost-efficient community-based public health, safety and infrastructure that stimulates economic growth, would save them millions each year, and attract investors like me. The state should partner with the community to foster economic prosperity, not invest in a system that the Department of Justice cited for willful mismanagement that has a legacy of harm” shared Christina Hollenback, Founding Partner, Justice Capital and one of the investor organizers.

Advocates, business leaders, and investors prepare for a long fight
“We are elated for this delay, but our fight is far from over. While today’s disruption clearly demonstrates that investors are hesitant to finance a fiscally and morally irresponsible plan, we know Barclays will be working hard to find buyers. We’re going to work even harder to make sure they don’t,” the Alabama Communities Not Prisons coalition said in a statement Thursday.

Investors and Business Leaders cut ties with Barclays for going back on their word
The American Sustainable Business Council and Social Venture Circle “made the decision to immediately return sponsorship and membership dues paid by Barclays and terminate their corporate membership immediately,” said Isaac Graves, Interim Executive Director, Social Venture Circle.

“We must take a decisive stand against associating with those who seek to profit from a private prison system that harms Black and Brown communities. We urge banks like Barclays to rethink their investment strategies for a healthier and more equitable world,” Kat Taylor, Impact Investor & Co-Founder and Board Chair of Beneficial State Bank, shared in a statement.

“It is crucial that we align our investments with values supporting a more just and sustainable society. We call on Barclays and all financial institutions to put their money into rebuilding our economy and our communities. Our businesses and investors will continue to speak out to encourage this responsible behavior,” says David Levine, President American Sustainable Business Council.

Advocates warn other banks not to go back on their word
“In the wake of public outrage over the role of private prisons in family separation, immigrant detention and mass incarceration, Barclays, JPMorgan Chase, Wells Fargo, Bank of America, BNP Paribas, SunTrust, Fifth Third Bank, PNC and Regions Bank made commitments to stop providing financing to the private prison industry. If these banks want to retain the public’s trust, they need to honor the spirit of these commitments and not pursue backdoors to keep supporting companies with clear track records of human rights abuses.” said Morgan Simon, Founding Partner of Candide Group.

“The fact that so many who promised to do better by taxpayers, investors, and communities – from Alabama Governor Ivey to the Wisconsin Public Finance Authority to Barclays – conspired to give this a green light in the first place is appalling. Alabama doesn’t need new prisons – the DOJ report made that clear – it needs to address abuse and free people. And Barclays, thought it’d outsmart the public with its sham commitment to stop financing private prisons, and it thought wrong. This should be a sign to anyone looking to trick the general public, taxpayers and financial stakeholders in an attempt to circumvent public scrutiny to make a buck that they’d better think again,” said Bianca Tylek, Executive Director, Worth Rises.

“We continue to urge banks and investors to refuse to purchase securities being offered this week and any similar securities going forward whose purpose is to perpetuate mass incarceration. We encourage expanding investment in solutions that repair the harm done in Black, Brown, Indigenous and systems impacted communities.” says Sonia Kowal, President, Zevin Asset Management.

“As discrimination and racism in our justice and policing systems runs rampant, we need companies that profit off the business of Black people, as Barclays does, to be a support to the communities that pay their bills. Banks, investors, and other leaders in the financial industry must refuse to purchase securities that perpetuate mass incarceration,” urges Scott Roberts, Senior Director of Criminal Justice and Democracy Campaigns, Color Of Change.

If you have any questions please contact [email protected].

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