Fifth Third Bank, National Association, announced that it would invest $100 million in projects that support community development through four Opportunity Zone fund partners. The first three partners are National Equity Fund (NEF), an affiliate of the Local Initiatives Support Corporation, Raymond James and Decennial Group. The funds will be used to develop projects in low-income urban and rural communities across the bank’s 10-state footprint. The investment represents one of the largest made by an institution with a social impact investment strategy in Opportunity Zones.
“We are committed to forging impactful partnerships that deliver community revitalization,” said Greg D. Carmichael, chairman, president & CEO, Fifth Third Bank. “We are proud to use this innovative approach to ensure our capital will serve the communities that are most in need.”
Investment projects will need to satisfy the following Fifth Third social impact criteria. They must be: located in a qualified Opportunity Zone, be public welfare investment eligible, located in an MSA where Fifth Third has determined community need under the CRA, actionable before the end of June 2020, Expected to generate a positive economic return and developed by an experienced, credit-worthy sponsor
Fifth Third is committing $25 million to the NEF Fifth Third Opportunity Zone Fund I LLC, $25 million to the Raymond James Opportunity Zone Fund IV and $30 million to Decennial Group. The funds will be used in three key investment categories: affordable housing; workforce housing and other community priorities for multifamily development; and certain non-residential or mixed-use real estate serving a particular community need, as well as projects that contribute to local job and business growth.
The first projects from the Fifth Third Opportunity Zone investments should be announced by June 30.
