Cut Carbon Note
Help protect the planet by changing the way we build
Combating climate change requires cutting emissions now. Today, the buildings where we live, work, and play are some of the largest contributors to carbon emissions in the United States. But lower-carbon solutions for buildings already exist. Now it’s time to put them to work.
The Cut Carbon Note is a secured, investment-grade rated, fixed-income product that finances sustainability upgrades for commercial buildings, with the objective of reducing carbon emissions.
By removing obstacles to constructing greener buildings, we’re making it attractive to put sustainability at the forefront of building decisions.
The Note is available to US retail and institutional investors.
Series 1 of the Cut Carbon Note traded on October 13. Stay tuned as we plan to come to market for Series 2 in coming weeks! Please contact us at info@calvertimpact.org if you'd like to be notified about our Series 2 offering.
Please note the Cut Carbon Notes are qualified to be offered and sold in all fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Investors in California, Tennessee, and Washington are subject to eligibility requirements.
Total Offering
$400 million. With current Series 1 $29.7 million offering of:
- $27,579,000 of Class A that has been assigned a provisional rating of AAA by DBRS as of June 2023
- $909,000 of Class B that has been assigned a provisional rating of AA by DBRS as of June 2023
- $1,212,000 of Class C that has been assigned a provisional rating of BBB by DBRS as of June 2023
Note: Different Classes have materially different risks. In certain situations, losses are first borne by Class C, then Class B, and lastly by Class A. See prospectus for further details.
Use of Proceeds
Finance sustainability upgrades for commercial buildings, with the objective of reducing carbon emissions
Asset Pool
Certain specific Commercial Property Assessed Clean Energy (“CPACE”) bond (“CPACE Bonds”) or assessment (“CPACE Assessments”) instruments that provide low-cost, long-term funding for energy efficiency improvements to commercial, industrial, multi-family, and non-profit buildings in the United States.
Minimum Investment
$1,000
Financial Return
Fixed interest rates for each class set at time of issuance, please refer to current pricing supplement for details
Average Life
As of 05/15/2023, the contracted principal payments from the CPACE Asset Portfolio have a weighted average life of 17.49 years. Please see prospectus supplement for further details.
Issuer
Calvert Impact Climate, Inc., is the issuer of the Cut Carbon Notes. The Cut Carbon Notes are an asset-backed security and will be issued by, and payable exclusively from the assets of, Calvert Impact Climate, Inc., a special purpose vehicle. The only material asset of Calvert Impact Climate, Inc., is the Asset Pool. If the Asset Pool does not produce sufficient cash flow, investors may suffer a loss.
Sponsor
Calvert Impact, Inc. is the Sponsor of the Cut Carbon Notes. The Sponsor is responsible for (i) structuring the Notes, (ii) selecting the CPACE Assets and arranging their transfer to the Issuer, and (iii) retaining a first-loss position (an “Eligible Risk Retention Interest”) in the Notes. The Notes are not obligations of the Sponsor or backed by the assets of the Sponsor or any other affiliate of the Issuer.
Asset Class
Fixed income
Impact
Impact Reporting is provided semi-annually, including portfolio-level impact data, as well as alignment with the Green Bond Principles, The Impact Principles, and other relevant industry standards.
