INSIKT (pronounced “in-seekt”), a Lending as a Service (LaaS) company, announced on Thursday it has closed a private social impact bond issuance of $26 million as part of its mission to accelerate financial inclusion in America and invest capital into its low-income communities.
Insikt reported that this marked its fifth securitization in 2018 backed by 21,000 responsible, credit building loans. Averaging about one securitization every six weeks, INSIKT has reportedly completed a total of over $130 million this year in social bond issuances. This placement notably brings the company’s total securitization volume to $273 million across 16 issuances since the inception of its securitization program in 2013.
Insikt reportedly worked with Amalgamated Bank on the social bond. Amalgamated claims to be America’s largest certified B Corp bank and, for nearly a century, has served as America’s largest socially responsible bank. While sharing details about the bond, Amalgamated Bank’s CEO, Keith Mestrich, stated:
“At Amalgamated, we don’t give lip service to responsible lending. We have a long history of delivering on it. This is why we align so well with INSIKT. How they structure their securitization program gives us the confidence that our investment will make a meaningful difference in the communities that need it most, while providing a healthy return for our shareholders – which is even more important now that we are a public company. Our relationship with INSIKT is the ultimate social impact strategy and a truly measurable model for creating sustainable financial inclusion nationwide.”
James Gutierrez, CEO and Founder of INSIKT, went onto add:
“It is an honor to welcome Amalgamated Bank to our family of investors. Amalgamated Bank is known and respected for their commitment to building a more just and compassionate society. We at INSIKT have deep respect for Keith Mestrich’s 25-year legacy in the labor movement and are thrilled to work together on creating a more inclusive financial system. Our social bond platform enables the alignment of our values and the opportunity to expand access to capital in low-income communities.”