The success of a recent social bond from Australia’s National Housing Finance and Investment Corporation (NHFIC) is the latest sign of growing interest in the community housing sector.
The industry is quickly developing as a standalone asset class and capital markets are playing a key role channeling capital into the sector.
NHFIC is an independent Australian government entity that provides loans to eligible community housing providers to increase the supply of social and affordable housing.
The 12-year bond - the largest by an Australian issuer – at $A562 million was oversubscribed by around three times by both domestic and international investors.
“There is good investor appetite for quality assets that fund the community housing sector helping vulnerable Australians stay in accommodation,” Director of Debt Capital Markets at ANZ, Andrew Brown said. ANZ was joint-lead manager with UBS and Westpac for the bond.
The success of the latest NHFIC social bond shows the financial sector has an important role to play in mobilising capital to fund community housing, according to Caryn Kakas, Head of Housing Strategy at ANZ.
“The challenge to improving meaningful supply of affordable housing requires a collaborative approach from the public, private and non-profit sectors,” she said.
ANZ is committed to increasing the availability of suitable and affordable housing options for all Australians and New Zealanders, including the supply of homes to buy and rent, as well as access to safe accommodation.
The bank has a $A50 billion commitment by 2025 to fund and facilitate sustainable solutions for customers including initiatives to help improve environmental sustainability, increase access to affordable housing and promote financial wellbeing.