Higher Rates to Meet Increasing Portfolio Demand

As we’re now seeing some of the pandemic stress subside, and many government and philanthropic programs having run their course, our portfolio pipeline is expanding. To attract more investment dollars to meet this growth in demand, we are raising our rates on our Community Investment Notes® today!

Interest rates in the impact space historically have low correlation to broader market interest rates and we understandably still see low rates in impact sectors serving lower-income communities. But our portfolio finances social and climate solutions globally, and we are seeing many portfolio partners adjust to the new rate environment and an overall increase in demand for community-based financing.

While longer-term capital is most helpful to our partners, we also recognize that investor demand has moved shorter term. As such, we’re introducing a new two-year option and also bringing our highest rate of 4% to our five-year Notes (matching the rate on the 10-year).

The new rates will apply to Notes opened on or after February 1, 2023; they do not change the rates of any existing Notes. For direct investors with current 10-year Notes, their default reinvestment of principal and interest will move to the five-year term now that it pays our maximum rate of 4%. As mentioned before, longer terms are very helpful, so let us know if you have interest in supporting us in this way.

Our rates are determined by the financing needs of our portfolio partners and not the broader market forces that make headlines. Our investors know that we have not changed rates often – once in the years 2016, 2018, 2020, and 2021, and then twice in 2022. We always base our rates on the portfolio pricing demand we see going forward in the impact sectors and communities we serve.

Overall, we strive for consistency with the Community Investment Note® – a product that has historically paid investors 100% of their principal and interest payments on over $2.5 billion invested, while consistently creating measurable impact​ since 1995*. Thanks to our investors for continuing their support in meeting the needs of communities.

• Past performance is no guarantee of future results.