ImpactAlpha, July 15 — Minneapolis-based U.S. Bank purchased the first $10 million for the bond, the first to be issued by a community development financial institution specifically to address racial inequality, according to Enterprise.
“With U.S. Bank’s support, the bond will enable Enterprise Community Loan Fund to lend to affordable housing and community development projects spearheaded by BIPOC-led developers across the U.S.,” Enterprise’s Lori Chatman told ImpactAlpha.
The bond is part of Enterprise’s Equitable Path Forward Initiative, which provides capital to developers at the entity and project level.
Social bond
Enterprise structured the bonds according to the social bond principles laid out by International Capital Market Association, said Chatman, and “applied them to the goals laid out by the Equitable Path Forward Initiative, specifically to address the extreme capital gap that BIPOC developers face from decades of systemic racism.”
