24 June 2020

Third NHFIC bond secures 775 new affordable homes

The National Housing Finance and Investment Corporation (NHFIC) has today finalised Australia’s largest ever bond issuance for social and affordable housing totalling $562 million.

The funds raised from the bond will benefit ten community housing providers (CHPs) across NSW, SA, Victoria and for the first time Tasmania, supporting 2,736 properties, including 775 new dwellings.

Since its establishment two years ago, NHFIC has issued nearly $1.2 billion in bonds, which have supported the delivery of more than 1,700 new and 5,400 existing homes built and managed by CHPs.

NHFIC’s third bond is anticipated to save the participating CHPs more than $80 million in interest payments over the 12-year term of the loans.

Cost savings can be channelled by CHPs into new projects, as well as providing additional tenant services ranging from employment and training, through to domestic violence and aged care support.

The CHPs to receive loans from NHFIC through this latest bond issuance include;

  • SGCH Sustainability (NSW) – $210 million
  • BaptistCare (NSW & ACT) (NSW) – $144 million
  • Mission Australia Housing (NSW) – $65 million
  • Common Equity Housing Ltd (Victoria) – $50 million
  • Junction and Women’s Housing (SA) – $26.14 million
  • Bridge Housing (NSW) – $24.86 million
  • Housing Choices Tasmania (Tasmania) – $17 million
  • Argyle Community Housing (NSW) – $12 million
  • Women’s Housing Limited (Victoria) – $9 million
  • Pacific Link Housing (NSW) – $4 million

For the third time, NHFIC’s bond issuance was oversubscribed by investors, both domestic and international, by a factor of three. This again demonstrates the potential for Australia’s community housing providers to grow significantly with NHFIC providing the vehicle to make this happen.