Last month, Century Housing announced a $100million bond offering to fund affordable housing in California, andthe offering has already been an instant success. The offering isthe first of its kind with a municipal bond and to be rated byFitch and S&P. The offering was 12 times oversubscribed withmore than $1 billion in investor interest.
"The response exceeded our expectations," AlanHoffman, SVP and CFO of Century Housing, tellsGlobeSt.com. "In addition to middle market investors and CRAinvestors, we saw strong interest from social andgreen/environmental investors. Affordable housing, andnotably projects that will ultimately be financed with low incomehousing tax credits, which is the majority of the projects wefinance, incorporate significant energy and water saving featuresas well as pollution reduction aspects. The social impact of thishousing is more important than ever, targeting the economic burdenfaced by so many that is a major contributor to the socialinequalities plaguing our society."
Century offered the opportunity because its business wasgrowing, and it had the ability to finance more affordable units."Century's book of financing for affordable housing throughoutCalifornia is increasing," said Hoffman. "Century is seeingopportunities to finance experienced quality developers across theState. In addition to funding an increase in our lendingportfolio, we will use a portion of the 2020 bonds to re-finance2019 bonds that are maturing later this year."
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