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.
The offering periods for the first two Cut Carbon Notes® series have closed. If you would like to be notified about upcoming availability of future series, please reach out to us at info@calvertimpact.org
Total Offering
$400 million, with the first two series supporting a current portfolio of $52.6 million. Most recent offering of:
- $17,484,000 of Class A that has been assigned a provisional rating of AAA by Morningstar DBRS as of June 2024
- $564,000 of Class B that has been assigned a provisional rating of AA by Morningstar DBRS as of June 2024
- $752,000 of Class C that has been assigned a provisional rating of BBB by Morningstar DBRS as of June 2024
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
Weighted-Average Life
Final legal maturity of 12/15/2053. The expected weighted-average life, based on a 6% constant prepayment rate assumption to a 10% clean-up call option, is 9.14 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.
