LISC Reaches $100 Million Milestone for Social Bond Program
The product of the LISC Impact Notes program finances community development investments, racial equity strategies
NEW YORK, April 19, 2022 /PRNewswire/ — The Local Initiatives Support Corporation (LISC) today announced that it has raised $100 million from the sale of its Impact Notes to help refinance existing debt and fund investments in affordable housing, small business, health, community safety, education and employment, all focused on people and places underserved by the traditional financial system.
Rated ‘AA-‘ by S&P, Impact Notes are offered monthly in nearly every US state via InspereX Legacy™ Platform, which supports values-based investing. The Notes are available in various maturities to investors with as little as $1,000 invest.
“This $100 million brand is a significant milestone for LISC, not just because of the amount of capital raised, but because of the diversity of participating investors,” said Christine TraversCFO of LISC.
Travers emphasized the importance of social investments to expand economic opportunity and growth for underserved populations. “The proceeds fund efforts to break down racial and socio-economic barriers to success so that families, communities and local economies can thrive,” she explained.
The Impact Notes program is the only debt offering from a Community Development Financial Institution (CDFI) that is listed as an investment, publicly available, settled by DTC and aligned with both the International Capital Market Association Principles of the social bond (SBP) and the UN Sustainable Development Goals (ODD).
It is also the first of a CDFI to receive a second opinion from Vigeo Eiris, which assesses social, environmental and governance (ESG) factors to validate issuers’ alignment with the SBPs and SDGs. The objective is to make it easier for investors to assess the value of Impact Notes with regard to their social and financial objectives.
“This program really aims to democratize social investment by offering an accessible instrument to a wide range of investors,” noted Anna SmukowskiSenior Director of Investor Relations and Capital Strategies at LISC.
“I think the answer so far – with individual investments ranging from a few thousand dollars to over $1 million – illustrates the market’s appetite for simple investments where the financial and social metrics are quite easy to understand,” she added.
“We are proud to partner with LISC and proud of the role we play in helping to unleash the power of capital for good,” added the CEO of InspereX. John Des Prez. “All segments of our distribution network have expressed interest in investing in the important work of LISC. We are thrilled to recognize this milestone achievement with LISC.”
LISC has been active in the capital markets since 2017, when it was the first CDFI to issue a publicly available bond, raising $100 million with institutional investors. The current Impact Notes program differs from the previous offering in that it is open-ended, with continuous issuance specifically designed to meet the needs of retail investors.
“Our positive experience reflects the growing market appreciation of community development financial institutions like LISC,” Travers said. “Over the past two years, corporations, foundations and asset managers have increasingly collaborated with CDFIs to support pandemic relief, racial equity and other investment strategies. impact. It further shows that CDFIs are sophisticated investment partners who are mission-driven, but also with a long track record of financial performance.”
Impact ratings are part of LISC’s overall financial strategy, which includes raising capital from the public, private, and not-for-profit sectors. To learn more about grades, visit www.lisc.org/invest.
LISC is one of the nation’s largest community development organizations, helping to forge vibrant, resilient communities across America. We work with residents and partners to close systemic gaps in health, wealth and opportunity and advance racial equity so people and places can thrive. Since our creation in 1979, LISC has invested $24 billion to create more than 436,320 affordable homes and apartments and develop 74.4 million square feet of commercial, community and educational space. To learn more, visit www.lisc.org
InspereX transforms the way fixed income securities and market-related products are accessed, priced and traded. Home to the pioneering BondNav® platform, InspereX offers financial advisors, institutional investors, issuers and risk managers deep access to markets for fixed income and market-related products across all asset classes, as well as state-of-the-art origination, distribution and education services. Focused on providing true price transparency, liquidity, execution aimed at price improvement and the benefit of insight gained through data aggregation, InspereX inspires greater trust through the power of technology.
The company is a leading underwriter and distributor of securities to over 2,000 brokers, institutions, asset managers, RIAs and banks. InspereX represents over 400 issuers and has underwritten over $670 billion in titles. The company has seven trading desks and more than 200 employees with main offices in Delray Beach, San Francisco, Chicagoand New York City.
Disclaimer: This is not an offer to sell or a solicitation of an offer to buy any securities. Any such offer is made only by means of a current prospectus (including any applicable pricing supplement) for each of the respective Notes. These offers may only be made to investors in jurisdictions in which the Notes are eligible for sale. Investors are advised to consult the current Prospectus before making any investment decision. No state or federal securities regulator has conveyed or approved the merits of the note offering. Any representation to the contrary is illegal. The Notes will not be insured or guaranteed by the FDIC, SIPC or any other government agency.
Impact Notes are not currently available to residents of Tennessee and Washington.
Ratings current as of 04/19/2022. An S&P credit rating is not a recommendation to buy, sell or hold Notes and may be subject to suspension, reduction or withdrawal at any time by S&P. Please see the current pricing supplement at the link below for the S&P credit rating assigned to the Notes currently offered for sale.
SOURCE Local Initiatives Support Society (LISC)