The Local Initiatives Support Corporation has announced that it is issuing $100 million in general obligation bonds to raise additional capital for its ongoing work to expand economic opportunity and drive investment in distressed urban and rural communities across the country.
According to LISC, the bond issue, which includes term bonds of ten and twenty years, represents the first time a community development financial institution (CDFI) has tapped the bond market for growth capital. The bonds have no geographic or programmatic restrictions, making them a flexible option for a broad range of investors. Standard & Poor's has assigned a "AA" rating to the issue, the same as the rating it assigned to LISC itself in September 2016. Morgan Stanley will serve as the underwriter for the offering.
Since 1980, LISC has invested $17.3 billion in the form of grants, loans, and equity in distressed neighborhoods and communities across the country, including more than $1.3 billion in 2016.
"Impact investors are looking for proven ways to help revitalize communities and restore economic mobility for people fighting to compete in the current economy," said LISC president and CEO Maurice Jones. "It has never been more important for us to invest in local economies so families can raise their standards of living. This new capital will not only help us fuel businesses, jobs, and large-scale redevelopment efforts, but also help address the persistent social and economic challenges preventing people from maximizing economic opportunities."