GreenState Credit Union Issues First Credit Union Bond Supporting Social Objectives under International Capital Markets Association Social Bond Principles

GreenState Credit Union Logo

Media Release

February 14, 2023
Contact: Jeff Disterhoft, President/CEO

GreenState Credit Union Issues First Credit Union Bond Supporting Social Objectives under International Capital Markets Association Social Bond Principles

North Liberty, Iowa (February 14, 2023) —GreenState Credit Union today announced the completion of its private placement of $100 million of fixed-to-floating rate social subordinated notes due 2033 (Social Subordinated Notes). The Social Subordinated Notes initially bear interest at a fixed annual rate of 7.75% for the first five years and will reset quarterly thereafter to what is expected to be the then current three-month SOFR rate plus 436 basis points. The Social Subordinated Notes were assigned an investment grade rating of BBB- by the Kroll Bond Rating Agency, Inc.

GreenState issued the Social Subordinated Notes in accordance with the GreenState Social Financing Framework, which allocates an amount equivalent to the net proceeds of the offering to support the credit union’s Minority Homeownership Initiative, designed to close Iowa’s racial homeownership gap. S&P Global Ratings, a leading global independent provider of environmental, social and governance (ESG) research and ratings, has reviewed and verified that GreenState’s Social Financing Framework is consistent with the current Social Bond Principles, as published by the International Capital Market Association.

“We are pleased to announce the completion of the first offering of credit union subordinated debt that adheres to social bond principles,” said Jeff Disterhoft, Chief Executive Officer of GreenState. “The offering supports our credit union’s objective to contribute meaningfully toward reducing the racial homeownership gap in Iowa and across the Midwest by funding at least $1 billion in mortgage loans to minority borrowers by the end of 2031. We appreciate the strong support of the investor community for a project which will have such a positive social impact across our communities. We hope that this initiative and the related bond issuance will provide a model that inspires other financial institutions to join this important effort.”

Olden Lane Securities LLC advised GreenState on the transaction’s structure and regulatory affairs. “GreenState has been a leader in credit union subordinated debt since its first offering in 2020. We are thrilled to have been a part of their latest innovative offering and expect it will serve the industry more broadly by drawing attention of ESG conscious investors to the important role credit unions play in community and social finance,” said Michael Macchiarola, Olden Lane’s CEO.

Olden Lane served as co-placement agent with Stifel Nicolaus & Co. Inc. Honigman LLP served as legal counsel to GreenState and Hunton Andrews Kurth LLP served as legal counsel to the placement agents. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy the Social Subordinated Notes nor shall there be any sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The indebtedness evidenced by the Social Subordinated Notes is not a deposit and is not insured by the National Credit Union Insurance Share Fund or any other government agency or fund. More information on GreenState’s Social Bond Framework can be found here.

About GreenState Credit Union
Headquartered in North, Liberty, Iowa, GreenState Credit Union is the country’s 19th largest credit union and is consistently one of the top-ranked credit unions for returning profits to its members in the form of better rates and lower fees. For information about GreenState, visit

Forward Looking Statements
This press release may contain a number of forward-looking statements. These statements may be identified by the use of such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would," and similar terms and phrases, including references to assumptions.

Forward-looking statements are based on various assumptions and analyses made by us in light of our management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors (many of which are beyond our control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the timing and occurrence or non-occurrence of events that may be subject to circumstances beyond our control; general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios; changes in competitive pressures among financial institutions or from nonā€financial institutions; our ability to obtain the necessary shareholder and regulatory approvals of any acquisitions we may propose; the amount of costs, fees, expenses, and charges related to the credit union's completed and pending acquisitions; changes in management's plans for the future; and our ability to realize related revenue synergies and cost savings within expected time frames; changes in legislation, regulations, and policies; other competitive, economic, political, and market factors affecting the credit union's business, operations, pricing, products, and services; and a variety of other matters which, by their nature, are subject to significant uncertainties and/or are beyond our control.

All forward-looking statements attributable to the credit union are expressly qualified in their entirety by these cautionary statements. Forward-looking statements speak only as of the date on which such statements are made. There is no assurance that future results, levels of activity, performance or goals will be achieved. Except as required by law, we have no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release. Accordingly, you should not place undue reliance on forward-looking statements.

Note Regarding Credit Rating
A rating is not investment or financial advice and is not a recommendation to buy, sell or hold securities. Ratings may be subject to revision or withdrawal at any time by the assigning rating organization. Each rating agency has its own methodology for assigning ratings and, accordingly, each rating should be evaluated independently of any other rating.

Note Regarding Second Party Opinion
S&P Global Ratings’ second party opinion is provided for informational purposes only and does not constitute an endorsement of any securities, product, or project, does not constitute investment or financial advice, and does not represent any type of credit or securities rating or an assessment of the issuer's economic performance, financial obligations nor of its creditworthiness.