Amalgamated Bank, a subsidiary of Amalgamated Financial Corp. and a mission-driven, full-service commercial bank that empowers organizations and individuals to advance positive social and environmental change, announced a $15 million loan to Inclusive Prosperity Capital, Inc. (IPC), a clean energy finance 501(c)3 platform, making new capital available to fund climate initiatives benefiting underserved market segments and communities. This investment adds to Amalgamated’s community development strategy of partnering with community development financial institutions and other impact focused intermediaries as well as stakeholders like the Kresge Foundation for the technical expertise and credit enhancement needed to deliver impact capital for climate solutions.
With this new lending facility, and Amalgamated Bank as an innovative and important capital partner, IPC is eager to expand its mission-focused investing and bring its much needed products and capital to underserved communities and markets throughout the United States.
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“This loan aligns the core principle of Amalgamated Bank’s intermediary community lending strategy of providing affordable and accessible banking services to coincide with the bank’s climate goals,” said Priscilla Sims Brown, President and CEO of Amalgamated Bank. The first U.S. bank to set full portfolio targets under the guidelines of the U.N. Net Zero Banking Alliance of 49% reductions in 2030 and net zero greenhouse emissions in its financing and operations by 2045, Amalgamated Bank was also the first to receive approval of the targets by Science Based Targets initiative (SBTi).
“IPC’s partnership with a forward-thinking financial institution like Amalgamated Bank is an important step in our continued growth. IPC is excited to begin deploying Amalgamated’s capital with our programs and partners to accelerate decarbonization and address climate injustices. Partnerships like those with Amalgamated make it possible to open markets and investment channels that make the built environment more resilient for everyone – the core mission of IPC,” said Kerry O’Neil, CEO, Inclusive Prosperity Capital.
The Kresge Foundation, a national philanthropy, contributed risk mitigation via a previously announced $10 million guarantee to IPC.
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“We made our guarantee to IPC to facilitate its access to capital and growth as one of the first green banks with national ambitions,” said Joe Evans, Kresge’s Social Investment Practice portfolio manager and social investment officer. “IPC provides a core piece of green banking infrastructure, bringing important project capital, technical expertise, products other community lenders can leverage, and development to a much-needed industry. This partnership with Amalgamated Bank, a leading investor into the community development climate-finance sector, offers a powerful proof point of IPC’s model.”
Organizations and individuals in communities impacted by climate change, who may have been overlooked by other institutions, will be able to receive funding for mission-aligned projects. The aim of the financing is to deliver energy security and resilience, decarbonization, climate justice, and economic growth through clean energy projects in underserved market segments and communities.
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