Reinvestment Fund, a national Community Development Financial Institution (CDFI), announced the sale of $69.5 million in general obligation bonds to buyers, including six institutional and three individual investors.
The bond issue is part of Reinvestment Fund’s continued strategy to raise and deploy capital in affordable housing, early childhood education, and other projects that will strengthen the communities it serves.
The bond will reach its final maturity in 2035. Reinvestment Fund engaged BofA Securities as the bond underwriter as well as PNC and J.P. Morgan as co-managers.
Officials noted the sale comes at a time when some are questioning CDFIs’ ability to achieve their goals amid headwinds in the national marketplace.
“We are delighted with this execution. Particularly in this climate, the bond market emphatically voted in support of our mission, our management team, and our ability to responsibly raise and deploy capital into communities that need our support. We are excited about our next chapter, and the market clearly agrees with us,” said Tiffany Canady, chief financial officer at Reinvestment Fund.
Headquartered in Philadelphia with an office in Atlanta, the organization said it is supporting the construction of 63 income-restricted affordable housing units for seniors in the Sharswood neighborhood of Philadelphia.
The project will be developed and guaranteed by Max and Zachary Frankel. Under the moniker of Philadelphia Workforce Homes, they have established themselves as one of a handful of developers building homes for affordable homeownership under the city’s Turn the Key program, said officials.
First utilizing financing from Reinvestment Fund, Frankel Enterprises started developing affordable homeownership properties in 2018. Homes are developed on city-owned or Philadelphia Housing Authority-owned vacant parcels and reserved for income-eligible buyers up to 100% of the area median income to be sold at $280,000.