NHFIC issues first bond to community housing providers

$315 million bond made available as 10-year, interest-only loans

22 March 2019

AHURI is very pleased to congratulate the National Housing Finance and Investment Corporation (NHFIC) on issuing its first bond to community housing providers (CHPs) providing social and affordable housing in Australia.

The $315 million bond will be made available as 10-year, interest-only loans at a fixed rate of under 3 per cent for a number of CHPs including BlueCHP, CHL, Compass, Evolve, Hume and Unity.

The NHFIC reported that demand for the bond was very strong from both local and international investors, with bids totalling more than $1.3 billion.

The issuance of the bond marks a significant milestone for the sector and an important step towards increasing affordable housing supply in Australia. In a media statement released by the NHFIC, Community Housing Industry Association CEO Wendy Hayhurst said ‘The NHFIC interest rate is significantly below the rates that the community housing industry can typically borrow and means our members can put more money into building new homes.’

Long-term AHURI research into appropriate bond aggregator models underpinned the development of the Australian Affordable Housing Bond Aggregator, which is operated by the NHFIC.

AHURI Executive Director, Dr Michael Fotheringham, says ‘At AHURI we are very pleased that our commitment to focussed research has helped develop the NHFIC and will further lead to improved housing outcomes for Australians on low incomes.’