Generate make $15 million impact investment to Salvation Army

Generate KiwiSaver has become a cornerstone investor in the Salvation Army Community Bond.

Thursday, October 1st 2020, 5:53AM

The investment – facilitated by Community Finance – means that Generate KiwiSaver are the first KiwiSaver provider to invest into the creation of 118 secure houses for families without homes.

The Community Bond is a fixed interest, 5-year impact investment yielding 2.30% per annum and delivers investors a sound investment return with social impact.

Generate executive director and lead portfolio manager, Sam Goldwater said that: “Generate is proving how large institutional investors can balance achieving competitive returns and enabling positive social outcomes. We hope others will follow our lead.”

The Salvation Army Community Bond is the first project by Community Finance, an impact investment platform established in 2019 to catalyse social and environmental change in New Zealand.

The platform operates by matching investors with specific projects, and making it easier for organisations to provide impact investments. Through Community Finance, $34.4 million has now been advanced to The Salvation Army, making Community Finance the largest open impact investment platform in New Zealand.

Community Finance chief executive James Palmer said, “We are thrilled to partner with Generate as the leading investor in this Community Bond, which will enable more life-changing work to be done for families in need in Aotearoa, New Zealand. Community Finance is proud to provide a bridge between responsible investors and projects like this, delivering lower cost finance and social impact.”

Generate joins a range of existing leading impact investors in this Community Bond, including $5 million investments from both The Tindall Foundation and Lindsay Foundation, and $2 million from both Foundation North and Matua Foundation.

Barry Coates, founder and CEO of Mindful Money, says: “Affordable housing was a major challenge before Covid, and now it is even more urgent. We congratulate Generate KiwiSaver for stepping up to help fund the Salvation Army’s programme. This is an example of investment for good – earning a sound return while making warm and healthy homes available to those who need them.”

Tags: bonds Fixed interest Generate Impact investing KiwiSaver