ANZ has announced its role as a joint leader in the issuance of a $562 million Social Bond for the Commonwealth's National Housing Finance and Investment Corporation (NHFIC). This bond represents the largest Social Bond issued by an Australian entity to date.
The NHFIC, an independent Commonwealth body, offers loans to community housing providers to boost social and affordable housing availability. The recent bond was oversubscribed nearly threefold, highlighting significant demand. The funds will be used to provide more housing options across Australia.
Caryn Kakas, ANZ Head of Housing Strategy, commented on the situation: “The strong demand for these Social Bonds demonstrates the critical role capital markets can play in the sustained growth of the community housing sector.” She further noted its relevance amid increased demand during the COVID-19 pandemic.
Proceeds from this 12-year bond will support 10 community housing providers in New South Wales, South Australia, Tasmania, and Victoria. It aims to develop 2,742 properties, including 781 new dwellings. ANZ collaborated with UBS and Westpac as joint lead arrangers for this third NHFIC bond within 18 months.
The response from the housing sector during COVID-19 has shown that collaboration between state and federal governments can enhance access to shelter for Australians. NHFIC’s bond issuance allows leveraging financial sector support alongside government incentives to optimize housing outcomes.
ANZ is dedicated to enhancing affordable housing availability in Australia and New Zealand. The bank has pledged AUD$50 billion by 2025 towards sustainable solutions that improve environmental sustainability, increase affordable housing access, and promote financial wellbeing.