New Rates to Support Communities
April 01, 2020
As our CEO wrote last month, to say we are living in extraordinary times would be an understatement. We are facing a global, uncertain threat that is directly impacting individuals, families, communities, and our economy. As we process the implications of this crisis, our staff has been in close touch with our portfolio partners and industry peers.
Our portfolio partners work in their local communities supporting affordable housing, healthcare, education, small businesses, and other critical services that are the backbone of our neighborhoods, cultural fabric, and economy. The businesses and non-profits that they serve are grappling with reductions in customers and revenue, and increases in costs as they adjust their operating models. While their work is all the more challenging now, our portfolio partners are well positioned to help communities navigate this new reality, provide financial and technical support, and access targeted resources, including those being mobilized from public and private sources.
Calvert Impact Capital is working alongside our partners to understand the new realities and support them in these times. The demand for the flexible financing that we provide is high. But given this new environment, we are lowering the rates on our Community Investment Note® today to meet the portfolio demand for lower cost capital. These rates will apply to new Notes purchased on/after April 1, 2020.
Our rates are determined by the financing needs of our portfolio partners and not by the broader market forces making headlines. Our investors know that we have not changed rates often– after many years, we increased rates in 2016 and in 2018 given growing portfolio demand.
Overall, we strive for consistency with the Community Investment Note® – a product that has paid investors returns on over $2 billion invested, while consistently creating measurable impact in communities for 25 years. We’re proud to continue that work in the face of this global challenge alongside investors and portfolio partners who are dedicated to creating solutions.