Equitable Facilities Fund Announces Fourth Bond Issuance to Support Equity in Education

Since 2017, the philanthropy-backed impact fund has obtained $800 million to capitalize on its innovative financial model that supports excellent – ​​and equitable – K-12 schools.

NEW YORK, August 30, 2022 /PRNewswire/ — The Equitable School Revolving Fund (ESRF) announced that it has closed more than $230 million in A-rated “social bonds” to support its mission to provide affordable school access facilities in high-performing, high-impact public charters around the world US

The funds will enable ESRF’s program administrator, Equitable Facilities Fund (EFF), to expand its portfolio of school borrowers who currently provide excellent education options to more than 60,000 students, including more than 80% are economically disadvantaged and identify as people of color.

The fourth round of bonds issued by the ESRF will recapitalize EFF’s philanthropy-backed impact fund, which since its launch in 2017 has provided more than $800 million in funding to support 120 schools in 35 cities across 19 states. Each series has earned a Social Bond designation from Kestrel Verifiers, signifying the high social impact of the school portfolio.

In July, S&P Global Ratings also reaffirmed the ESRF’s “A” rating and revised its outlook from stable to positive, citing “the continued diversification of the loan portfolio” and “good operational performance over the three years of existence of the program”. The positive outlook for this latest offering has led to strong demand from new and regular investors, bringing the total number of investors to 67.

While charter schools receive public funding per student, they often have inequitable access to quality school facilities. EFF is designed explicitly to level these playing fields by using an innovative model to provide low-cost loans to schools to undertake their own facilities projects. It’s a strategy that has so far redirected more than $160 million in savings to schools in the EFF portfolio, where 90 percent of students outperform their district peers.

“Parents have said loud and clear that they value well-performing public schools for their children. Now, investors have made it clear that they too value investments that benefit families and communities,” said Anand Kesavan, Founder and CEO of EFF. “Our portfolio schools are transforming communities. As we approach $1 billion in debt capital, it is now clear that investors are also seeing this value,” says Kesavan.

EFF’s strong foundation creates the opportunity to innovate and grow to help more students and offers bold funders more effective use of their philanthropy. So far, EFF has raised $300 million of philanthropy strengthening the credit structure of the fund and its ability to provide outsized loan savings to schools. Today the team is campaigning to raise an additional sum $200 million to seed a second fund, through which EFF will deploy a total of more than $2.5 billion loans by the end of 2027.

In another innovation for the industry, EFF has launched a Texas Facility Fund with more than $20 million in the philanthropic support of local foundations that will mobilize more than $200 million state school funding. “We are thrilled to see local foundations and social investors taking notice of EFF’s innovative lending model. The strength of our national platform can now be unleashed to advance racial and educational equity in our most vulnerable regions. “, added Kesavan.

EFF plans to launch several state-based low-cost revolving loan funds. If you would like to learn more about EFF’s local initiatives or start a revolving loan fund in your state, please contact Mike McGregor at [email protected].

About the Equitable Facilities Fund

Equitable Facilities Fund is a 501(c)(3) nonprofit social impact fund created to provide long-term, low-cost loans that enable high-performing public charter schools to maximize the resources they spend on students. High-quality public charter schools promote bright futures for children across America, and the EFF believes these schools should borrow on terms comparable to traditional public school districts. EFF administers an ‘A’-rated Revolving Loan Fund, which recapitalizes with funds from Fair School Revolving Fund bond issues, to provide on-credit bond investment opportunities high, long term and scalable. To find out more, visit www.eqfund.org or email [email protected].

SOURCE Fair Trade Facilities Fund

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