Capital Impact Partners Launches New AA-* Rated $125 Million Investment Note Offering To Engage Investor Support For Underserved Communities

Institutions and individuals can earn a financial, as well as a social, return on their investments through Capital Impact’s social impact investment notes

Arlington, VA (July 12, 2018) — Capital Impact Partners, a nonprofit corporation, certified by the U.S. Department of Treasury’s Community Development Financial Institutions Fund as a Community Development Financial Institution (CDFI), announced the launch of a new offering of up to $125 million of ‘AA-’* rated fixed-income Capital Impact Investment Notes (Notes) that allow retail and institutional investors the opportunity to invest in the mission-driven organization’s nationwide efforts to create social impact for underserved communities. Available for as low as $1,000, individual and institutional investors can purchase Notes through their brokerage accounts and earn a financial, as well as a social, return on their investments.

The Notes are available at fixed interest rates with maturities that range from 1-10 years through Incapital LLC, a leading underwriter and distributor of securities. The Prospectus, Pricing Supplements and information about how to invest will be available to the public on Capital Impact’s website and to financial professionals through Incapital’s Legacy™ platform, which offers products to investors that align financial goals with personal principles through values-based investing. Anyone with questions can also email invest@capitalimpact.org.

S&P Global, the world’s leading provider of independent credit ratings, assigned the Notes an ‘AA-’ rating on April 9, 2018*. This marks Capital Impact’s second offering of Notes, following the successful initial offering of up to $100 million of Notes, which commenced October 2017. Approximately $80 million of Notes were sold in the 9-month initial offering, all of which remain issued and outstanding.

“We are incredibly proud that investors saw Capital Impact Investment Notes as a viable and trusted offering when adding an impact investing choice to their portfolio,” said Ellis Carr, President and CEO of Capital Impact Partners. “The fact that we sold a majority of our initial offering in just nine months illustrates the strong appetite that retail and individual investors have to use their investment dollars to help advance important social and racial justice issues. I am confident we will see continued momentum with our new offering.”

Capital Impact Investment Notes continue to be the only offering of its kind issued by a CDFI that is S&P rated, DTC-settled and offered on a continuous basis through brokerage accounts in almost all U.S. states.

Capital Impact will use proceeds from the issuance primarily to support projects focused in the health care, education, affordable housing, and community development sectors in underserved communities nationwide. These efforts are part of Capital Impact’s work to foster good health, job creation and economic development. Examples of Capital Impact’s work can be seen in this video.

Over the past three decades, Capital Impact has closed more than $2.5 billion in loans that have achieved positive social change in underserved communities through a multi-pronged effort that includes delivering strategic financing to projects that increase access to social services, incubating new programs, and providing capacity building to help grow organizations serving their communities. These types of investments are often hard to secure from traditional financial institutions, making the efforts of CDFIs like Capital Impact integral to the success of organizations supporting underserved communities.

Capital Impact’s work as a social change organization is reinforced by its strong financial performance. The AA- S&P credit rating with “stable outlook” recognized Capital Impact’s strong asset quality and liquidity, minimal risk profile, and consistent growth in loans and assets. Further details of Capital Impact’s financial highlights can be found online at www.capitalimpact.org/invest/capital-impact-investment-notes-terms-highlights.

“As a mission-driven organization, it is incumbent on us to consistently demonstrate both our strong financial performance as well as our ability to create social impact for those communities most in need,” said Natalie Gunn, Chief Financial and Administrative Officer for Capital Impact. “S&P’s AA- rating, as well as recognition from other third-party organizations, illustrate our consistency in maintaining this critical track record.”

In addition to an AA- issuer rating from S&P, Capital Impact has received a number of independent validations that illustrate its efforts to drive impact for underserved communities, including:

Listed on ImpactAssets IA50 Impact Investment Fund showcase list;
Recognition by Aeris dating back to 2005 for our social impact, financial strength, and leadership in policy changes impacting disadvantaged people and communities;
Platinum-level recognition by Guidestar;
Membership within the Federal Home Loan Bank Atlanta; and
CDFI certification by the U.S. Department of Treasury’s Community Development Financial Institutions Fund.

“Day in, and day out, our staff is focused on four strategic pillars: addressing systemic poverty, creating equity, building healthy communities, and promoting inclusive growth,” said Carr. “The proceeds we earn from this Notes offering amplify this work and help ensure we can engage communities to break the barriers to success.”

DISCLAIMER

This press release 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 in such states should obtain a current Prospectus by visiting www.capitalimpact.org/invest/capital-impact-investment-notes. Investors are urged to review the current Prospectus before making any investment decisions. 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. As of the date hereof, the Notes will be offered for sale in all 50 states and the District of Columbia, excluding the States of Arkansas and Washington.

*S&P Global assigned a long-term issue credit rating of AA- to the Notes on April 9, 2018. Please check the Pricing Supplement at the link above for the S&P credit rating assigned to Notes currently being offered for sale. 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.

Forward-Looking Statements

This press release contains statements that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Also, when Capital Impact uses any of the words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend” or similar expressions, it is making forward-looking statements. These forward-looking statements are not guaranteed and are based on Capital Impact’s present intentions and on Capital Impact’s present expectations and assumptions. These statements, intentions, expectations, and assumptions involve risks and uncertainties, some of which are beyond Capital Impact’s control, that could cause actual results or events to differ materially from those anticipated or projected. Purchasers of Notes should not place undue reliance on these forward-looking statements, as events described or implied in such statements may not occur. Except as required by law, Capital Impact undertakes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise.

About Capital Impact Partners: Through capital and commitment, Capital Impact Partners helps people build communities of opportunity that break barriers to success. We champion social and economic justice for underserved communities to foster good health, economic opportunity, and interconnectedness. Through mission-driven lending, incubating social impact programs, impact investing, and policy reform we partner with local communities to create equitable access to health care and education, healthy foods, affordable housing, and dignified aging for those most in need. We have disbursed more than $2.5 billion to revitalize communities over the past 35 years. Our leadership in delivering financial and social impact has resulted in Capital Impact earning a “AA-” rating from S&P Global and being recognized by Aeris since 2005 for our performance. Headquartered in Arlington, VA, Capital Impact Partners operates nationally, with local offices in Detroit, MI, and Oakland, CA.

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