In a First for a CDFI, Century Housing Launches Commercial Paper Program
December 20 2022 - 9:00AM
Business Wire
Sustainability-labeled commercial paper program
designed by U.S. Bank will help fund affordable housing
developments in California
Century Housing Corporation and U.S. Bank announced today that
they have utilized an innovative capital markets solution to help
fund Century’s affordable housing development projects.
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Century’s new sustainability-labeled commercial paper program
provides the organization with affordable short-term funding, while
also enabling investors to invest directly in securities that
finance energy-efficient, affordable housing developments across
California. While commercial paper programs are a common mechanism
for large businesses to fund operations, this is the first
introduced by a Community Development Financial Institution (CDFI).
U.S. Bank serves as Commercial Paper Dealer and Sustainability
Coordinator on this innovative transaction.
“Century is driven by its mission to meaningfully increase the
supply of truly affordable housing in the communities it serves,”
said Alan Hoffman, Chief Financial Officer of Century Housing.
“This program will provide Century with increased capital to scale
its work.”
“Century Housing Corporation consistently works to identify
innovative ways to finance its affordable housing lending
operations in California, so it is fitting that they would become
the first CDFI to launch a sustainability commercial paper
program,” said Zack Boyers, Chief Executive Officer, U.S. Bancorp
Community Development Corporation (USBCDC). “For investors, it
presents an opportunity to invest in an affordable housing
initiative that closely tracks and shares details on the impact of
its projects.”
The commercial paper program, rated A1+ by S&P Global and
F1+ by Fitch, will raise up to $100 million from investors, which
Century will lend to affordable housing developers. Most
Century-financed projects are typically retrofitted for energy
efficiency; transit-oriented; and/or receive low-income housing tax
credits. Over the past 25 years, Century has provided financing for
more than 50,000 new affordable and workforce homes.
USBCDC has partnered with Century since 2015, providing
traditional financing to support its successful affordable housing
initiatives. USBCDC and U.S. Bank’s capital markets division – a
top commercial paper dealer – worked together to design this
commercial paper program and bring it to market. The securities
sold through the program are labeled sustainability notes as they
are designed within Century’s Sustainability Bond Framework. The
framework, confirmed by a second party opinion to comport with ICMA
guidelines, sets strict use of proceeds rules that align with
Century’s mission of building sustainable communities by financing
the supply of quality affordable housing.
About Century Housing Corporation
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.
About U.S. Bancorp Community Development Corporation:
With $39.57 billion in tax credit equity committed as of Nov.
30, 2022, U.S. Bancorp Community Development Corporation, a
subsidiary of U.S. Bank, provides innovative financing solutions
for community development projects across the country using state
and federally sponsored tax credit programs. USBCDC's commitments
provide capital investment to areas that need it the most and
contribute to the creation of new jobs, the rehabilitation of
historic buildings, the construction of needed affordable housing,
the development of renewable energy facilities, and the generation
of commercial economic activity in underserved communities. Visit
USBCDC on the web at www.usbank.com/cdc.
Investment products and services are:
NOT A DEPOSIT • NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK
GUARANTEED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221220005246/en/
Sara Williams, Century Housing Corporation swilliams@century.org
| 310.642.2055
Todd Deutsch, U.S. Bank Public Affairs & Communications
todd.deutsch@usbank.com | 612.303.4148
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