Affordable housing for seniors, critical support for small businesses in under-resourced communities and access to essential services for low and moderate-income (LMI) communities are among the projects PNC has financed through its inaugural $700 million social bond issued in August 2021.
Social bonds are a form of debt that allow investors to help raise funds for projects with positive social outcomes. In this case, the proceeds were used to finance or re-finance eligible social projects that promote positive social outcomes and that benefit LMI individuals and communities, majority–minority census tracts, and/or vulnerable or underserved populations.
Eligible projects included:
- Low-Income housing tax credits and lending to individuals and families who make less than 80% of the median income in an area or 120% less in high-cost areas.
- Investments and loans that support access to and enhancement of education, healthcare and other essential needs.
- Investments that support job creation and retention in LMI communities and majority-minority census tracts or that reduce income inequality.
The social bond builds onto existing initiatives, such as PNC’s four-year $88 billion Community Benefits Plan (CBP). Announced in 2021, the CBP began Jan. 1, 2022 and aims to boost homeownership, advance small businesses and revitalize communities for LMI and minority populations.