Reinvestment Fund sells $50 million socially responsible G.O. bonds

By Susanna Moon

Chicago, May 2 – Reinvestment Fund said it priced $50 million of general obligation bonds in an oversubscribed issue for investing in low-income communities.

Proceeds from Reinvestment Fund's Impact Investment bonds will support small businesses, grocery stores and childcare centers in “struggling communities, helping to bring much needed jobs and boost local economic growth,” according to a company announcement.

Reinvestment Fund is an S&P AA-rated Community Development Financial Institution.

“The CDFI industry was founded on the faith, trust and patience of a unique class of American investor,” Donald Hinkle-Brown, the company’s president and chief executive officer, said in the press release. “These forerunners to impact investors accepted an unconventional and illiquid investment vehicle for many years in the pursuit of a socially responsible outcome for themselves and underinvested communities.”

“Reinvestment Fund demonstrates that community impact and market yields are not incompatible, and the market understands and appreciates this. By bridging to the capital markets, we are able to provide investments that are safe, appropriately risk priced, and at a greater scale.”

Reinvestment Fund manages $1 billion of capital from more than 850 investors that include individual investors, banks, government entities, private foundations as well as faith-based and community organizations.

Reinvestment Fund seeks to be a catalyst for change in low-income communities, the release noted. The Philadelphia-based organization’s mission is to build wealth and opportunity for low-wealth people and places through the promotion of socially and environmentally responsible development.

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