The Local Initiatives Support Corporation (LISC) is pleased to announce that it has received the Environmental Finance “social bond of the year” award (corporate category) for its 2020 issuance of Impact Notes. LISC is using proceeds from the Notes to refinance existing debt and to help build economic opportunity, bridge the racial wealth gap, and support strong, healthy communities throughout the United States.
The Environmental Finance awards committee praised the innovative structure of LISC's Impact Notes and the intentional use of proceeds, which are aligned with the United Nations Sustainable Development Goals (SDGs). Awards are issued annually to celebrate the leading green, social and sustainability bond deals, as well as top market participants.
“Experienced community development financial institutions (CDFIs) like LISC have increasingly turned to the capital markets as we expand our work to address health, wealth and opportunity gaps that affect millions of people,” said Annie Donovan, chief operating officer at LISC. “We are grateful to Environmental Finance for highlighting the importance of these efforts, and the lasting, positive impact that CDFIs can have on families and communities.”
According to Environmental Finance, 2020 was a record-breaking year for the green, social and sustainability bond market, which crossed the $600 billion threshold for the year. In fact, the market saw a nine-fold jump in social bonds, as COVID-19 motivated issuers and investors to support recovery plans for individuals, businesses and local economies.
LISC issued its Impact Notes to both refinance existing debt and expand investments in affordable housing, small businesses, health care, community safety, strong schools, and jobs—including up to $10 million to further LISC’s long-standing commitment to racial justice through Project 10X, a $1 billion LISC initiative to build equity and wealth for Black, Indigenous, and People of Color (BIPOC).
Launched in late 2020, Project 10X includes investments in homeownership and small business ownership, building credit and savings, strengthening BIPOC-led financial institutions, investing in community assets and wellbeing, and supporting quality jobs with good wages and benefits.
“For more than 40 years, LISC has worked to catalyze opportunity for people and communities, especially those long scarred by the impact of discrimination,” Donovan said. “Project 10X deepens that commitment by getting at some of the systemic underpinnings of racial inequality and investing in ways that make our economy work better for everyone.”
LISC Impact Notes are aligned with Social Bond Principles (SBPs) and SDGs. Rated ‘AA-‘ by S&P, LISC’s offering was the first CDFI Notes program to receive a second-party opinion from the global rating agency Vigeo Eiris, which evaluates social, environmental and governance factors to validate issuer alignment with SBPs and SDGs.
For more information on LISC’s Impact Notes, our social bond framework and our second party opinion, visit lisc.org/invest.
For more information on Environmental Finance’s 2021 Bond Awards, visit https://www.environmental-finance.com/content/awards/environmental-finances-bond-awards-2021/
About LISC
LISC is one the country’s largest community development organizations, helping 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 that people and places can thrive. Since our founding in 1979, LISC has invested $26.7 billion to create more than 463,000 affordable homes and apartments, develop 78.5 million square feet of retail, community and
educational space and help tens of thousands of people find employment and improve their finances For more, visit www.lisc.org.
Disclaimer: This is not an offer to sell or a solicitation of an offer to buy any securities. Such an offer is made only by means of a current Prospectus (including any applicable Pricing Supplement) for each of the respective notes. Such offers may be directed only to investors in jurisdictions in which the notes are eligible for sale. Investors are urged to review the current Prospectus before making any investment decision. No state or federal securities regulators have passed on or endorsed the merits of the offering of notes. Any representation to the contrary is unlawful. The notes will not be insured or guaranteed by the FDIC, SIPC or other governmental agency. Receipt of the award does not constitute an endorsement or recommendation by Environmental Finance to invest in the Notes and is no guarantee of future performance.
Impact Notes currently are not offered to residents of Tennessee and Washington.
