SunTrust to stop financing private US prison operators

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SunTrust to stop financing private US prison operators

Georgia, Atlanta-based US lender, 128-years-old SunTrust Banks Inc. had issued a statement on Monday, the 8th of July 2019, saying that the US lender would stop financing private prison operators alongside immigration holding facilities or detention centers for the asylum seekers, remarking a latest move of a US lender distancing itself from Trump Administration’s policies ahead of a 2020 US presidential election.

Adding that the decision was made after contemplating views of company stakeholders, the Georgia-based lender said in a statement on Monday (July 8th), “This decision was made after extensive consideration of the views of our stakeholders on this deeply complex issue”.

In fact, SunTrust Group owns one of several US lenders that has syndicated loans for at least one major US private prison facilities likes of CoreCivic Inc. and GEO group Inc. According to data from Refitiv Eikon, back in 2018, SunTrust bank alongside Wells Fargo & Co.

and Bank of America Corp. had raised around $1.8 billion in three separate deals for CoreCivic alongside GEO Group. Nonetheless, lenders financing private prison operators in US had been under tremendous pressure since US President Donald Trump’s restriction on immigration had raised questions over the conditions of private detention centers for asylum seekers.

Private detention centers has been holding about two-thirds of US asylum seekers, arrested by Immigration and Customs Enforcement, S&P Global Ratings revealed last year.