California Endowment Taps Bond Market for First Time in 18 Years
- Health-care nonprofit will use proceeds to fund grant giving
- The endowment is borrowing $300 million with taxable bonds
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The California Endowment, the largest health foundation in the state, plans to offer its first debt sale in nearly two decades to help alleviate some of the financial pressure charities around have been facing due to Covid-19.
The $3.9 billion endowment plans to price $300 million of bonds as early as this week to fund grants to nonprofit groups. This is the first time it has sold so-called “social bonds,” though it previously issued $80.6 million of debt in 2003. The taxable bonds, which will be sold with a corporate identifier, carry a triple-A rating from Moody’s Investors Service and S&P Global Ratings.