A US bank is featuring letters of credit (L/Cs) in a package that includes a five-year commitment to provide US$1 billion in funding for affordable housing and community development projects across its 12-state footprint.

RBS Citizens Financial Group, perhaps best known for Citizens' Bank in Massachusetts, says the loans and investments made through this programme are part of the bank's ongoing efforts to provide communities with innovative products and services to support community stabilisation and economic health.

Beneficiaries

One Massachusetts community already lined up to benefit from the package is Marion Village Estates.

RBS Citizens says it has committed a total of US$13 million in construction financing and L/Cs and a US$10 million equity investment to finance construction of 60 new affordable housing units there.

New division

Also set to benefit is a neighbourhood in Boston in which RBS Citizens is making a US$13 million equity investment to rehabilitate 146 units of urban family housing for low-income households.

RBS Citizens says it has established a Community Development Division focused on identifying further opportunities to make a difference in the communities in its area of operations.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.