A major debt issuance highlights a minority-focused approach to doing business
CHARLOTTE—Piedmont Natural Gas has successfully closed a $600 million debt offering, its largest debt issuance in the history of the company and its first since it merged with Duke Energy in 2016.
“The proceeds were used to retire a bank loan and for other corporate purposes,” Duke Energy spokesperson Catherine Butler told American Gas. “We’ll typically do debt issuances that are not tied to a specific project. We issue debt in the market so we can fund operations in our business. If we can access low-cost capital, ultimately our customers save money in the long run. It also helps the banks with whom we’re partnering.”
In the case of this most recent debt issuance, there were three partnering banks involved—all of them owned by disabled veterans. That was not a coincidence nor an accident. This transaction highlights Duke Energy’s practice of routinely involving diversity-owned financial institutions in its capital-raising efforts.
Over the past three years, the company has actively sought to work with firms representing a diverse range of backgrounds, including women-owned, African American-owned, disabled-veteran-owned and Hispanic-owned banks. “We’ve built relationships with a variety of banks over the past three years,” Butler told us. “But we’ve really increased our emphasis on working with partners that are focused on diversity and inclusion.”
For Piedmont and Duke, that emphasis extends to every part of the organization. “We have really put a focus on D&I across the board,” Butler said. “We do it internally with our hiring, with our board of directors and our work with vendors as a whole.”
“We’ve had a diverse-supplier program for some time,” Piedmont Natural Gas Communications Manager Tammie McGee told American Gas. “But just recently we have been more intentional and thoughtful, understanding that everyone has a role in helping us foster a more diverse and inclusive working environment. We want to be as innovative and progressive as possible. We need employees and need to work with businesses that have unique backgrounds and skills to enable us to get to that place.”
The company has put specific actions in place to ensure that ideal remains a fundamental part of its DNA.
“We’re making sure we’re improving our talent pipeline by removing barriers for underrepresented populations,” McGee explained. “Internally, we’re analyzing and taking action on our minority attrition rate. We’re also enhancing leadership development for women and minority populations. And the leaders across our company are developing D&I councils.”
For McGee, the motivation for focusing on diversity and inclusion is obvious. “We believe a diversity of people fosters innovation and enhances our customers’ experience,” she told us.