RDF Expands Into Capital Market with Community Investment Taxable Bonds

RDF Expands Into Capital Market with Community Investment Taxable Bonds


November 27, 2019

      Contact: Tom Espinoza

Phone:    602-417-1409

Email:     tespinoza@razafund.org

PHOENIX, Ariz.— The Raza Development Fund (RDF) completed its inaugural public debt offering by issuing $50 million in community investment taxable bonds. The bonds are unsecured, interest only, maturing in July 2034, and paying an annual coupon of 3.53% every six months. Hilltop Securities and J.P. Morgan were the underwriters in the transaction, with Lewis Roca Rothgerber Christie, and Greenberg Traurig acting as issuer’s and underwriter’s counsel, respectively.

“Our mission is to serve Latino & Poor families by providing access to important community resources. This is made possible through our financing of multiple community development projects including education facilities, affordable housing, community health clinics and food bank facilities in low-income communities. It is at the heart of our mission,” said Tom Espinoza, president and CEO. “Our organization entering the capital bond market is a major accomplishment as the largest Latino Community Development Financial Institution (CDFI) in the country.”

This 15 year financing provides additional flexibility to the capitalization of RDF, as it continues to diversify its funding sources now having the public debt markets among the capital providers of the Fund, which include major financial institutions, insurance companies, the Federal Home Loan Bank of San Francisco, and the Federal Financing Bank through the CDFI Fund Bond Guarantee Program.

In the past decade, our financings have served nearly 280,000 patients and over 245,000 families annually, building nearly 60,000 housing units and providing for over 87,000 classroom seats for students.

S&P Global Ratings assigned an AA(-) credit rating to RDF, and stated that “With its national footprint, the Fund is positioned to respond to the needs of underserved communities, facilitate financing to projects, and provide technical assistance that aims at serving families in low-income communities across the country by working through community-based organizations.”

Founded in 1999 as a support corporation of UnidosUS, RDF provides access to capital and financing solutions to non-profits, UnidosUS affiliates, and other Latino-serving organizations across the country with the mission of breaking the cycle of poverty in low-income communities. Since inception, RDF has originated over $900 million of community development loans and investments in 34 states across the nation, leveraging over $4 billion of capital into low-income communities. Headquartered in Phoenix, AZ, RDF lends nationwide and has offices in Seattle, WA and New York City, NY.