Impact Investments Promote Sustainable and Energy Efficient Building Practices
Century Housing has achieved a significant impact investing milestone by issuing more than $100 million of Century Sustainable Impact Notes (“Notes”), the net proceeds of which refinance existing indebtedness and finance affordable housing developed with energy efficient features, sustainably sourced materials, and in close proximity to job centers and public transit.
Century Sustainable Impact Notes provide institutional and retail investors a unique opportunity to align financial goals with personal principles through values-based investing. Since the Notes became available in February 2021, investors have helped Century finance more than 5,400 affordable apartment homes, about 74% of which are also financed with Low Income Housing Tax Credits which typically include green construction practices, and 49% of which are transit-oriented. Transit-oriented development has a positive impact on the environment by reducing dependency on air-polluting vehicles.
In addition to the environmental benefits, the new and preserved affordable homes financed through Notes will serve low-income communities by helping to provide more quality housing options and more jobs. On average, homes financed with the help of Notes will be affordable to households earning approximately 52% of area median income. We anticipate that more than 6,000 full-time equivalent jobs will be created as a result of the funded development work.
In 2020, Century became the first Community Development Financial Institution (“CDFI”) to be rated by both Fitch and S&P, earning ratings of AA Stable and AA- Stable, respectively. Additionally, Sustainalytics, a leading independent ESG and corporate governance research, ratings, and analytics firm, in its June 9, 2020 Second Party Opinion Report, is of the opinion that the Century Housing Corporation Sustainability Bond Framework aligns with the four core components of the International Capital Markets Association’s Sustainability Bond Guidelines 2018. Century partners with InspereX LLC, Member FINRA/SIPC, to distribute the Notes through its sustainable finance platform to a nationwide network of retail and institutional investors in denominations as low as $1,000.
“Century Sustainable Impact Notes give Century the ability to tailor issuance size and maturities in order to seize impact investment opportunities,” said Alan Hoffman, Chief Financial Officer of Century Housing. “By democratizing investment, mission-driven organizations gain more access to financing needed to address social inequalities associated with housing shortages.”
Century Sustainable Impact Notes can be issued at fixed interest rates with maturities that range from 6 months to 20 years. The current prospectus and pricing supplements are available online at century.org/invest.
“We are proud of the role we play in connecting purpose-minded investors with Century’s important work to create stable, sustainable communities,” said InspereX CEO John DesPrez. “The $100 million milestone demonstrates the keen interest of individual investors and institutions to support affordable housing efforts, and we look forward to working with Century toward the next milestone.”
About Century Housing
Century Housing Corporation is a mission-driven Community Development Financial Institution (CDFI) that finances quality, affordable housing throughout California to provide dignified homes, healthy and hopeful futures, and economic independence to the people we serve. From our start as a state agency and through our past 27 years as a private non-profit, Century has invested more than $2 billion to create and preserve over 50,000 homes while creating thousands of construction jobs. Century-financed developments showcase a unique legacy of serving our triple bottom line: positive financial, social, and environmental outcomes supporting a more just and sustainable future in the places where help is needed most. Century Housing is based in Culver City, California.
InspereX, Member FINRA/SIPC, is transforming how fixed income securities and market-linked products are accessed, evaluated, and traded. Home to the pioneering BondNav® platform, InspereX provides financial advisors, institutional investors, issuers, and risk managers deep access to fixed income and market-linked products markets across asset classes, as well as industry-leading origination, distribution, and education. Focused on delivering true price transparency, liquidity, execution targeting price improvement, and the information advantage gained through data aggregation, InspereX inspires greater confidence through the power of technology.
The firm is a leading underwriter and distributor of securities to more than 2,000 broker-dealers, institutions, asset managers, RIAs, and banks. InspereX represents more than 400 issuing entities and has underwritten more than $670 billion in securities. The firm has seven trading desks and more than 200 employees with principal offices in Delray Beach, San Francisco, Chicago, and New York City.
This 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. Ratings current as of 7/21/2022. A credit rating is not a recommendation to buy, sell or hold Notes and may be subject to suspension, reduction or withdrawal at any time. Please check the current pricing supplement for credit ratings assigned to notes currently being offered for sale. The sustainability designation and these credit ratings should not be the only factors investors rely on when assessing the merits and risk of this investment. Investors should rely on the terms as presented in the prospectus. Investors may obtain a current prospectus by visiting www.century.org/invest. The notes are subject to risks, including the loss of principal. Investors are urged to review the current prospectus before making any investment decision. The notes will not be insured or guaranteed by the FDIC, SIPC or other governmental agencies. Past performance is no guarantee of future results.