Monarch Private Capital Announces Inaugural Social Bond Issuance

Proceeds will provide positive social impact and help build sustainable communities through affordable housing

Monarch Private Capital, a nationally recognized tax-advantaged investment firm that develops, finances, and manages a diversified portfolio of projects that generate both federal and state tax credits, is pleased to announce its inaugural $235 million social bond issuance. Proceeds of the Monarch Social Bond will be used to finance affordable housing projects to support the firm’s commitment to narrowing the affordable housing gap in the United States. 

Monarch Private Capital works to build a better world through ESG investing by integrating ESG benchmarks into all of its tax-advantaged offerings as well its day-to-day operations. The Monarch Social Bond directly aligns with the firm’s sustainability initiatives and its mission to positively impact communities. An investment of this size has the ability to create over 4,000 quality affordable homes for Americans across the country and $2 billion in local income.^[1] The scope of impact, however, goes beyond increased access to affordable housing. Additionally, projects create jobs, stimulate local economies and provide underserved communities with enriching programs and valuable resources to help forge a brighter future for residents for generations to come.

As a part of its commitment to sustainability, Monarch created its Social Bond Framework to guide current and future issuance of social bonds by Monarch and its subsidiaries. Monarch engaged Sustainalytics to provide a second-party opinion that the Framework is in accordance with the International Capital Markets Association’s (ICMA) Social Bond Principles (SBP) and their four core components: 1) Use of Proceeds, 2) Process for Project Evaluation and Selection, 3) Management of Proceeds, and 4) Reporting. The opinion states that not only is the Framework aligned with ICMA, calling it “credible and impactful,” but that Monarch demonstrates a strong commitment to sustainability.

“Monarch’s social bond is a natural progression from our ESG funds,” said Ian Chomat, Chief Financial Officer at Monarch. “Our experience and expertise in the affordable housing sector have led to the development of over 35,000 quality homes and created more than 100,000 jobs. The new social bond will help us continue to increase our positive impact on communities across the country.”

Since inception, Monarch has paired tax equity investing with ESG to help its investors positively impact communities and achieve their sustainability goals while mitigating their federal and state tax liabilities. The firm’s diverse offering of tax-advantaged investments includes opportunities in affordable housing, renewable energy, historic rehabilitation and film. To date, Monarch has managed ESG funds with investments in over 600 projects generating $3.5 billion of tax credits, $7 billion in project capital and $30 billion in economic impact in more than 30 states. To ensure its funds meet internationally recognized standards, the firm implemented an ESG Investment Framework across its main federal projects and funds and engaged an independent third party to validate their impact. Monarch’s ESG funds provide widespread quantifiable community and global benefits. From strengthening neighborhoods and stimulating economies to creating jobs and fostering a more sustainable future for all, Monarch helps investors give their money a mission.

For more information on Monarch’s programs and services, please contact Ian Chomat by emailing ichomat@monarchprivate.com.

About Monarch Private Capital

Monarch Private Capital manages ESG funds that positively impact communities by creating clean power, jobs, and homes. The funds provide predictable returns through the generation of federal and state tax credits. The Company offers innovative tax credit equity investments for affordable housing, historic rehabilitations, renewable energy, film, and other qualified projects. Monarch Private Capital has long-term relationships with institutional and individual investors, developers, and lenders that participate in these types of federal and state programs. Headquartered in Atlanta, Monarch has offices and tax credit professionals located throughout the U.S.

[1] National Association of Home Builders, The Economic Impact of Home Building in a Typical Local Area, https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics/economic-impact/economic-impact-local-area-2015.pdf