Carver Bancorp, the holding company for Carver Federal Savings Bank, a certified Minority Depository Institution, and Bank of America closed a senior secured social impact revolving credit facility with BlackRock‘s alternative solutions group, which manages private market portfolios and invests across alternative asset classes, sectors and geographies on behalf of its clients.
The transaction represents the first time that Carver has participated in a subscription line facility and is among the first-of-its-kind transactions in which an MDI has joined as a co-lender, according to a press release from the company. It is also the first subscription line transaction with an MDI lender for both BlackRock and Bank of America, according to the release.
“A group of community leaders, business owners and clergymen from Harlem and Brooklyn came together in 1948 to establish Carver because African Americans did not have a place to bank at that time,” Michael T. Pugh, president and CEO of Carver Bancorp, said, “Today our institution stands proudly beside two of the largest financial service institutions in the world to help drive meaningful and long-lasting economic change in underserved communities across the U.S., which have been disproportionately affected by the COVID-19 pandemic. On behalf of the Carver board of directors, the communities we serve and the ideals that make our nation great, I thank BlackRock and Bank of America for their partnership and commitment to economic empowerment in communities of color.”
“This credit facility is a great example of Bank of America’s commitment to driving innovation and inclusion in ESG and impact financing. We are grateful for the partnership from Carver and BlackRock that has helped us create a social loan structure with a dual-impact angle: inclusion and engagement of MDIs in the subscription facility syndication process and enhanced access to financing and essential services for minority communities,” Andrew Karp, global head of investment grade capital markets at Bank of America, said.
“We couldn’t be more excited to work with Carver and Bank of America,” Pam Chan, chief investment officer and global head of the alternative solutions group at BlackRock, said. “We are delighted to expand our work with like-minded institutions that seek to build more inclusive financial markets and help more people experience financial well-being, all while delivering on behalf of our clients. This credit facility reflects our commitment to help MDIs grow their businesses, and in so doing, enabling further wealth creation in diverse communities across the U.S.”
