Citi Announces Inaugural $2.5 Billion Affordable Housing Bond Issuance and Largest-Ever Social Bond

Citi today announced the issuance of its first Affordable Housing Bond. The transaction consisted of a $2.5 billion 4-year non-call 3-year fixed to floating rate note issuance, the largest-ever social bond from an issuer in the private sector. The use of proceeds from the bond will finance the construction, rehabilitation and preservation of quality affordable housing for low-and moderate-income populations in the United States, building on Citi’s record as the largest financer of affordable housing in the country.

Citi’s extensive efforts to expand the availability of affordable housing include providing affordable housing developers with a range of financing solutions, such as construction and permanent lending, tax credit equity, and Fannie Mae and Freddie Mac mortgage banking. In 2019, Citi Community Capital – the unit through which the firm finances all types of affordable housing and community development projects – reported over $6 billion in lending for affordable rental housing projects. Partnering with developers, non-profit organizations and local governments, Citi has helped create or preserve nearly 488,000 affordable housing units over the past decade.

“As the largest affordable housing lender in the United States, Citi is a leader in the effort to increase the availability of affordable rental housing for the nation’s workforce and most vulnerable populations,” said Citi CEO Michael Corbat. “This transaction represents an important next step in expanding Citi’s commitment to ensuring that all families have access to safe and affordable housing.”

As part of the transaction, Citi worked exclusively with women, veteran and minority-owned broker-dealers, including active bookrunners Blaylock Van LLC; CastleOak Securities, L.P.; Loop Capital Markets LLC and Samuel A. Ramirez & Co. Inc. Academy Securities, Inc.; Great Pacific Securities; MFR Securities, Inc.; Roberts & Ryan Investments Inc. and Siebert Williams Shank & Co., LLC also served as co-managers on the transaction.

“Citi continues to reaffirm its commitment to diversity and inclusion. The selection of CastleOak Securities, L.P. as joint lead manager on Citi’s $2.5 billion social bond to increase affordable housing in the nation’s most vulnerable populations highlights how Citi continues to be a catalyst for change,” said David R. Jones, Co-Founder, President and Chief Executive Officer, CastleOak Securities, L.P.