Aura Completes Largest $50 Million Social Bond Securitization Led by Community Investment Management
This securitization is the sixth bond issuance of 2018 for a total of $181 million of capital raised.
SAN FRANCISCO-- Aura, a certified CDFI (Community Development Financial Institution) using technology to disrupt the predatory lending industry, announced the closing of its largest social impact securitization of $50 million, backed by approximately 40,000 credit-building loans. Community Investment Management (CIM), a prominent impact investment manager based in San Francisco, led the issuance which included a broad mix of participants including traditional banks, credit funds, family offices and other social impact funds.
This latest issuance propels Aura’s total securitization volume on its proprietary platform to a total of $323 million. It marks the sixth placement in 2018 with Aura having closed, on average, one social bond issuance every six weeks. Aura’s securitization capability enables it to expand greater financial inclusion by financing credit-building loans to hard working low-income consumers.
CIM’s investment in Aura’s latest issuance comes at the right time in this country for two prominent mission-driven entities to join forces to amplify impact for a greater good. Aura’s recent designation as a Community Development Financial Institution (CDFI), has opened the doors for a variety of participants to come forward with aligned values to recycle capital bank into low and middle-income communities across America. Financial institutions and foundations may now be able to fulfill their Community Reinvestment Act (CRA) and internal program related obligations, by investing in social bonds that create social impact at scale.
“CIM is pleased to support Aura in reaching hard-working families with an affordable alternative to payday lending. Aura’s mission to help underserved yet highly deserving families across the country establish good credit scores and make better financial decisions aligns with our core values and is a compelling solution to promote financial inclusion at scale,” said Jacob Haar, Managing Partner of Community Investment Management.
“We are thrilled to welcome CIM, a leading impact investor, to our largest ever social bond issuance. CIM shares our values of expanding access to capital for working families in America and ending their reliance on predatory lending. We look forward to working together as we scale our lending solution and advance our mission of economic empowerment across America,” said Ege Tanor, Vice President of Capital Markets at Aura.
About Community Investment Management:
CIM is an institutional impact investment firm that provides strategic debt funding to scale and demonstrate responsible innovation in lending to traditionally underserved communities to advance financial inclusion and drive widespread adoption of such innovation by the financial mainstream.
Aura is a technology-powered, CDFI that provides small, affordable loans to working families in America. Aura’s mission is to build financially healthy low-income communities by providing empowering financial services to America’s 66-million underbanked and unbanked. Aura has pioneered a cloud-based lending technology that enables trusted local businesses to submit credit applications for centralized review and approval by Aura’s proprietary scoring algorithms. Currently available in over 850 locations across California, Texas, Illinois and Arizona, Aura has provided hundreds of thousands of credit-building, responsible loans to low-income households since launching in 2014. We’re proud that 67% percent of Aura’s repeat customers grow their credit score by an average of 312 points from their first to second loan. By leveraging technology to reach more geographies and working families across America, Aura aims to end reliance on predatory lending and the payday loan industry’s 23,000 store footprint. Aura was founded in 2012 by James Gutierrez, Kevin Kang, and Randy Wong. All three founders helped create and scale Oportun, recently named by Time Magazine as one of the Top 50 Genius Companies in 2018.