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NHFIC: Social Bond Report 2021

The National Housing Finance and Investment Corporation (NHFIC) has released its Social Bond Report for 202021. NHFIC’s Social Bond Report provides insights into bond issuances, including borrower profiles and use of proceeds.

Highlights include:

  • Issuing 3 bonds – including NHFIC’s first sustainability bond and longest-tenor bond, and first floating rate note – raising a total of $805 million.
  • Supporting more than 4,900 dwellings, with around two-thirds (65 per cent) of the CHP loans funded by the three bonds underpinning new housing supply.
  • Provided 9 community housing providers with an estimated $161 million in fee and interest savings, through longer tenor and lower-interest loans.
  • Continued to attract private investment into social and affordable housing in Australia, by growing NHFIC’s investor base domestically and offshore, with 7 new offshore investors.
  • Meeting the housing needs of a range of cohorts including vulnerable women, indigenous households, and people with disabilities.

Full media release here

Social Bond Report here

NHFIC release first flagship housing report

The National Housing Finance and Investment Corporation (NHFIC) has released its first flagship
report producing five-year projections for housing supply and demand across Australia’s major cities
and regional areas.

The State of the Nation’s Housing 2020 report assesses the number of new households that are
expected to form (new housing demand) over the next five years, the number of new net dwelling
additions expected to come on-line, and annual balance of new supply and demand, while also
assessing housing affordability

Full media release here

CHIA & NHFIC: results from the COVID-19 impact interviews

CHIA & NHFIC interviewed leaders from 30 community housing organisations during June and July 2020 to find out how they responded to the challenges of the first wave of the COVID-19 crisis which emerged in Australia in March 2020.

The report outlines the key findings from those interviews as they relate to business continuity, financial impacts, general customer services, asset management, housing management, access and demand, human resources, learning from COVID-19.

CHIA’s report: ‘Responding to COVID-19: What we learned from talking to CHOs’  can be accessed here

NHFIC’s report ‘Australia’s social and affordable housing sector: A resilient response to COVID-19’ can be accessed here.

Audio file of the presentation session here

NHFIC ISSUES FIRST SOCIAL BOND OF $315 MILLION

Last week, the National Housing Finance and Investment Corporation (NHFIC) issued its first bond of $315 million to community housing providers (CHPs). CHIA congratulates NHFIC on their success in providing the single largest social bond in Australia.

NHFIC’s bond will ensure funds raised be loaned to CHPs to help deliver more social and affordable housing across the country. The bond will provide a fixed rate of under 3.00% for 10-year, interest-only loans to CHPs who are participating in NHFIC’s first round of loans. BlueCHP, CHL, Compass, Hume and Unity are all part of the NHFIC scheme.

As a result of NHFIC’s bond, CHPs are provided with greater financial certainty and cheaper finance which will generate better cash-flow. The funds will be used to create up to 300 new affordable rental dwellings, enhanced support services and ongoing maintenance.

“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,” said Wendy Hayhurst, CHIA CEO.

Nathan Dal Bon, NHFIC’s CEO, said he’d like to thank the many stakeholders who have helped with the success of NHFIC’s first bond; including the community housing sector, state governments and bond investors.

“NHFIC is very pleased at the exceptionally strong level of investor demand for its first affordable housing bond which was four times oversubscribed. We are now able to pass on the benefits of NHFIC bonds through to CHPs which ultimately benefits tenants on lower incomes,” Mr Dal Bon said.

NHFIC will work closely with the community housing sector and investors to regularly issue social bonds in the future and create more affordable housing in Australia.