Capital Impact Partners Launches ‘AA’* Rated Investment Opportunity To Support Underserved U.S. Communities

Investors can earn a financial, as well as a social, return on their investments

Arlington, VA (October 11, 2017) — Capital Impact Partners, a non-profit corporation, certified by the U.S. Department of Treasury’s Community Development Financial Institutions Fund as a Community Development Financial Institution (CDFI), today announced the launch of an offering of up to $100 million of ‘AA’* rated fixed-income Capital Impact Investment Notes (Notes) that allows retail and institutional investors the opportunity to invest in the mission-driven organization’s nationwide efforts to create social impact for underserved communities. Available for as low as $1,000, individual and institutional investors can purchase the Notes through their brokerage accounts and earn a financial, as well as a social, return on their investments.

The Notes are available at fixed interest rates with maturities that range from 1-10 years through Incapital LLC, a leading underwriter and distributor of securities. The Prospectus, Pricing Supplements and information about how to invest are available to the public online through Capital Impact’s website and to financial professionals through Incapital’s Legacy™ platform, which offers products to investors that align financial goals with personal principles through values-based investing.

S&P Global, the world’s leading provider of independent credit ratings, assigned the Notes an ‘AA’ rating on September 7th, 2017*. This marks the first time that a Notes offering being made available by a CDFI is S&P rated, DTC-settled and offered on a continuous basis through brokerage accounts in most U.S. states.

“Through Capital Impact Investment Notes, we are creating the opportunity to drive financial activism by creating a product that helps investors create positive social change for people in communities across this country while also earning a return on that investment,” said Ellis Carr, President and CEO of Capital Impact Partners. “We are proud and excited to be with Incapital at the forefront of developing capital markets solutions for CDFI funding needs. That’s a win for investors, a win for our work, and most importantly, a win for those most in need of critical social services.”

Capital Impact will use proceeds from the issuance primarily to support projects focused in the healthcare, education, affordable housing and community development sectors in underserved communities nationwide. These efforts are part of Capital Impact’s work to foster good health, job creation and economic development. Examples of Capital Impact’s work can be seen in this video.

Over the past three decades, Capital Impact has closed more than $2 billion in loans that have achieved positive social change in underserved communities through a multi-pronged effort that includes delivering strategic financing to projects that increase access to social services, incubating new programs, and providing capacity-building to help grow organizations serving their communities. These types of investments are often hard to secure from traditional financial institutions, making the efforts of CDFIs like Capital Impact integral to the success of organizations supporting underserved communities.

Capital Impact’s work as a social change organization is reinforced by its strong financial performance. In January 2017, the organization was one of the first CDFIs to earn an issuer credit rating from S&P Global. That “AA issuer credit rating with stable outlook” recognized Capital Impact’s strong asset quality and liquidity, minimal risk profile, and consistent growth in loans and assets. Further details of Capital Impact’s financial highlights can be found online at www.capitalimpact.org/invest/capital-impact-investment-notes-terms-highlights.

“The S&P AA ratings for both Capital Impact at the issuer level and for our Notes demonstrates to investors that a mission-driven enterprise can deliver a strong financial performance while simultaneously creating impact through our multi-pronged efforts in communities,” said Natalie Gunn, Chief Financial and Administrative Officer for Capital Impact. “We’ve consistently demonstrated this through a track record that extends back more than three decades.”

Examples of the type of work that the Capital Impact Investment Notes will support include:

Education: Since 2009, Capital Impact has partnered with Equitas Academy to provide the financing the school needed to both launch and expand their program. This K-7th grade school serves a deeply impoverished area of Los Angeles where most of the kids qualify for free or reduced-lunch and are secondary English speakers. Read their story here.

Health Care: Ole Health started as a humble clinic for farmworkers, but with financing from Capital Impact, they now offer thousands of low-income Napa Valley families quality health care through their innovative integrated behavioral health model. Read their story here.

Healthy Food: For 20 years, five Iraqi brothers have brought fresh, healthy and locally produced foods to Detroit. They have even defied the odds of the city’s economic turmoil. Now, with Capital Impact’s support, they’ve once again expanded their operations, increasing their healthy investment in their neighborhood and neighbors. Read their story here.

Housing: Affordable housing is a cornerstone to inclusive communities. In one Spokane, WA community that was threatened by a neighborhood struggling with drugs and nuisance homes, Capital Impact employed a “cooperative housing” model in partnership with ROC USA that helped residents take back their community and control their future. Read their story here.

Dignified Aging: Capital Impact helped scale a radical new model for skilled nursing care called the Green House project. This innovative approach to care is designed from the ground up to look, feel and “operate” like a real home for 10-12 elders – returning control, dignity, and a sense of well-being to its residents. Read their story here.

“Our 2020 Vision to help people and communities break the barriers to success is grounded by four strategic pillars: addressing systemic poverty, creating equity, building healthy communities, and promoting inclusive growth,” said Carr. “The proceeds received from investors – big and small – in our Notes offering will certainly amplify our work across the country.”

In addition to the S&P AA issuer rating, Capital Impact has received a number of independent validations that illustrate its efforts to drive impact for underserved communities including:

• Recognition by Aeris dating back to 2005 for our social impact, financial strength, and leadership in policy changes impacting disadvantaged people and communities;
• Platinum level recognition by Guidestar;
• A member of the Federal Home Loan Bank Atlanta; and
• A CDFI certified by the U.S. Department of Treasury’s Community Development Financial Institutions Fund.

DISCLAIMER

This press release 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. Investors in such states should obtain a current Prospectus by visitingwww.capitalimpact.org/invest/capital-impact-investment-notes. Investors are urged to review the current Prospectus before making any investment decision. No state or federal securities regulators have passed on or endorsed the merits of the offering of notes. Any representation to the contrary is unlawful. The notes will not be insured or guaranteed by the FDIC, SIPC or other governmental agency. As of the date hereof, the Notes will be offered for sale in all 50 states and the District of Columbia, excluding the States of Arkansas and Washington and the Commonwealth of Pennsylvania.

*S&P Global assigned a long-term issue credit rating of AA to the Notes on September 7, 2017. Please check the Pricing Supplement at the link above for the S&P credit rating assigned to Notes currently being offered for sale. An S&P credit rating is not a recommendation to buy, sell or hold Notes and may be subject to suspension, reduction or withdrawal at any time by S&P.

Forward-Looking Statements

This press release contains statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Also, when Capital Impact uses any of the words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend” or similar expressions, it is making forward-looking statements. These forward-looking statements are not guaranteed and are based on Capital Impact’s present intentions and on Capital Impact’s present expectations and assumptions. These statements, intentions, expectations and assumptions involve risks and uncertainties, some of which are beyond Capital Impact’s control, that could cause actual results or events to differ materially from those anticipated or projected. Purchasers of Notes should not place undue reliance on these forward-looking statements, as events described or implied in such statements may not occur. Except as required by law, Capital Impact undertakes no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise.

About Capital Impact Partners: Through capital and commitment, Capital Impact Partners helps people build communities of opportunity that break barriers to success. We deliver strategic financing, incubate new social programs, and provide capacity-building to help ensure that low-to-moderate income individuals have access to quality healthcare and education, healthy foods, affordable housing, and have the ability to age with dignity.

Headquartered in Arlington, VA, Capital Impact Partners operates nationally, with local offices in Detroit, MI, and Oakland, CA. Learn more at www.capitalimpact.org.