INSIKT Raises $210 Million Through Its Social Bond Securitization Program in 2018

INSIKT (pronounced “in-seekt”), a Lending as a Service (LaaS) company, announced on Monday it has raised $210 million through its social bond securitization program in 2018, which was backed by 174,447 of its responsible, credit-building consumer loans.  According to INSIKT, this has propelled the total securitization volume to $353 million, over nineteen issuances, since the program’s inception in 2013. The company reported:

“The latest social bond issuance marks INSIKT’s eighth placement in 2018, a record for the company, and, arguably, the industry in a one-year time span, highlighting the power of recycling capital back into low-income communities.”

INSIKT also revealed it has built significant momentum in social impact investing as it makes headway with its social bond platform supporting the company’s mission to bring more families into the opportunity economy. While sharing more details, James Gutierrez, founder and CEO of INSIKT, stated:

“We know the ‘American Dream’ takes good credit. In the US, there is a major credit crisis in low-income communities, widening the chasm between the haves and the have nots. INSIKT’s approach is a game-changer for the social capital world that allows us to expand our loan-making services to people in need at increasingly lower costs.”

Ege Tanor, Vice President of Capital Markets at INSIKT, also commented:

“We are extremely excited about the success and continued growth of our social bond program and the difference it is making in bringing families into the opportunity economy. Our CDFI designation was a major win for our borrowers because it provided an avenue for banks to use their capital to fund loans that help low income families.”

INSIKT added its 2019 goal for the program is to accelerate investor portfolio expansion to a wider audience of banks, foundations and eligible accredited investors looking for scalable social impact with a meaningful return.

White Label Loan Origination Platform Insikt Completes $26 million Social Bond Securitization With Amalgamated Bank

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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.”