Socially responsible investors get AA-rated investment opportunity

By Jeff Pines

Silver Spring, Md., Oct. 18 – Capital Impact Partners’ new $100 million note program will make notes available on a monthly basis until it sells $100 million. The notes, which are rated AA by S&P Global Ratings, are being sold via Incapital.

“We’re in early stages of conversations with many broker dealers and institutional investors that participate in the social impact space,” Louise Herrie, managing director of Incapital, told Prospect News.

“It’s premature to discuss amounts at this time, but I can say that in these early days, we are seeing the most interest in the 10-year offering,” she said.

The issuer is an Arlington, Va.-based non-profit certified by the U.S. Treasury as a Community Development Financial Institution.

“The notes offering is part of our capitalization strategy to fund our portfolio and operations,” said Ellis Carr, president and CEO of Capital Impact.

The proceeds will go to Capital Impact’s general operating account. “We can’t specifically determine which project receives how much capital from the notes,” Carr said. “Each project will be evaluated on its individual needs and merits to determine funding or financing levels.”

“In short, the proceeds will go to support a variety of work including lending, capacity building and other strategic initiatives with partners. “This will include both new and, in some cases, ongoing multi-year efforts,” he told Prospect News.

Capacity building for a nonprofit is something that will help it continue providing services now and in the future and might include improving volunteer recruitment, a communications strategy, or updating technology, according to the National Council of Nonprofits’ website.

An example of the kind of project Capital Impact helps with was Unity Health Care opening a health care center in Washington D.C.’s Ward 5 in June 2015. About 30% of the people in the area live below the poverty line, according to Capital Impact’s website.

Capital Impact’s reach is national. It’s helped nonprofits in Los Angeles, northern California, Detroit, Colorado and Texas.

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