Several major US banks and corporations have committed tens of billions of dollars this year to fight racism following the police killing of George Floyd and Black Lives Matter protests. Allstate Corp., one of the nation’s largest home and auto insurers, is pursuing a different strategy to address racial inequality nationwide and advance the empowerment of diversity, including financial districts such as Wall Street.

The 90-year-old Illinois-based company said it had priced $1.2 billion in 5- and 10-year senior notes through a syndicate made up entirely of corporate-owned companies. minorities, women and veterans (MWVBE).

The historic pact is significant because Allstate says it’s the first time a corporate bond offering of this size has been handled exclusively by these companies.

The deal is a game-changer as various companies generally have lesser roles and duties for allowances.

Large traditional banks typically work with large corporations on such bond transactions, with the aim of capturing some of their most profitable business in the capital markets.

For the offering, Allstate has hired Loop Capital Markets, Academy Securities, Ramirez & Co. Inc. and Siebert Williams Shank as co-bookkeepers. AmeriVet Securities, Cabrera Capital Markets LLC, CL King & Associates, Penserra Securities LLC and R. Seelaus & Co. LLC were co-managers. These companies will each earn a portion of the $1.2 billion debt in fees, Allstate reports. The insurer will use the funding to help pay for its $4 billion acquisition of National General Holdings Corp., a purchase that is expected to close early next year.

“It’s time to take a stand to create more equity in the equity markets,” said Tom Wilson, chairman, president and CEO of Allstate, in a press release. “Various companies have the ability to increase their market share, as evidenced by the results of this transaction. Allstate is committed to doing even more, including doubling its volume of transactions with various companies in 2021. Sustainability will require the commitment of other corporate bond issuers, investment managers and investment banks from forefront, many of which have large programs being expanded. Fairness is good for all of us!

As of September 30, Allstate had an investment portfolio of $91.2 billion, a huge sum from which various businesses can potentially benefit.

Jim Reynolds, President and CEO of Chicago-based Loop Capital, which ranks No. 1 on Black Enterprise’s 2019 BE Investment Banking List, said: “We are delighted that our longstanding relationship with Allstate has allowed us to raise capital for them and live by our mantra of putting customers first.

Supposedly, various companies are getting more business from the corporate bond market this year with increased corporate attention and a greater focus on tackling racial issues.

Mario Rizzo, Chief Financial Officer of Allstate, said, “This successful transaction demonstrates that issuers can leverage the talent of MWVBEs while creating more capital markets equity.