The National Housing Finance and Investment Corporation (NHFIC) has finalised the largest social bond – at $562 million – by an Australian issuer.
The funds raised from the NHFIC bond will support ten community housing providers (CHPs) across NSW, SA, Tasmania and Victoria, financing 2,736 properties including 775 new dwellings.
The third NHFIC bond will pass on the benefits of strong investor demand by providing a fixed rate of 2.06 per cent for 12-year interest only loans to the CHPs, which provide subsidised housing.
In total, the bond is anticipated to save the participating CHPs more than $80m in interest payments over next 12 years.
The first loan to a Tasmanian CHP forms part of the latest bond, with Housing Choices Tasmania to use the funding for 192 existing and new social and affordable homes.
Full media release here