This program will provide bond insurance for communities that have been marginalized who are seeking to address the need for water and wastewater improvements in a more cost effective way.
Water Finance Exchange (WFX) will be launching the second phase of a credit enhancement program for three communities in Texas and the Gulf Coast to improve access to capital markets and deliver more affordable water and wastewater infrastructure solutions. The program is supported by the Robert Wood Johnson Foundation (RWJF) and builds on earlier work conceptualizing the financial and legal structure of philanthropically supported credit enhancement.
“We’re excited to take the innovative finance concepts we’ve developed and implement them in the communities we work with,” said Rogelio Rodriguez, Director of the Texas Infrastructure Fund at WFX. “We share that excitement and passion for sustainable water infrastructure solutions with the Robert Wood Johnson Foundation.”
“Access to clean water and resilient infrastructure is critical to communities’ health, wellbeing, and prosperity,” said Kimberlee Cornett, Director of Impact Investments at the Robert Wood Johnson Foundation. “Communities that have been excluded from investment need access to public and private financing to be able to make water infrastructure improvements a reality.”
Small communities that have been historically disadvantaged are often unable to access financing through traditional capital markets and bank lending because they have not traditionally pursued those avenues or been left out due to the perception of risk. The resulting costs and competitive nature of limited funding through infrastructure programs leave these communities with limited affordable options.
“The historic federal and state investment in water infrastructure has done much to close the gap, but financing and capital markets will have to be part of the long-term solution to infrastructure challenges,” said Rodriguez. “Our partnership with the Robert Wood Johnson Foundation can demonstrate how philanthropy and capital markets can work together to institutionalize support for communities that have been historically marginalized.”
The proposed credit enhancement program ultimately results in pools of communities, spreading financing risks across a larger base. This attracts greater investment interest, resulting in lower interest rates for communities. WFX’s long-term technical assistance support and loan guarantee from RWJF provide additional security for this phase of the program.
In this phase of program development, WFX will identify three communities to execute loan agreements with, further institutionalizing the legal structure and financial model. By demonstrating the model’s success in driving investment and delivering affordable financing to communities, WFX is prepared to scale the program to communities across the country.
About WFX
Water Finance Exchange (WFX) is a 501(c)(3) non- profit comprised of experienced water and finance professionals who work closely with communities to address head-on their water infrastructure funding needs and opportunities. Our mission is to help communities build sustainable and resilient utilities that are the foundation of economic growth and prosperity.
About RWJF
RWJF is a leading national philanthropy dedicated to taking bold leaps to transform health in our lifetime. To get there, we must work to dismantle structural racism and other barriers to health. Through funding, convening, advocacy, and evidence-building, we work side-by-side with communities, practitioners, and institutions to achieve health equity faster and pave the way, together, to a future where health is no longer a privilege, but a right.