ANZ jointly leads largest Australian social bond to help more people into homes

ANZ today announced it jointly led the third Social Bond issue of $562 million for the Commonwealth’s National Housing Finance and Investment Corporation (NHFIC), representing the largest Social Bond by an Australian issuer.

NHFIC is an independent Commonwealth entity that provides loans to eligible community housing providers to increase the supply of social and affordable housing. The funding from this bond, which was oversubscribed by about three times, will deliver more housing choices for Australians across the country.

ANZ Head of Housing Strategy, Caryn Kakas said: “The strong demand for these Social Bonds demonstrates the critical role capital markets can play in the sustained growth of the community housing sector.

“This is particularly relevant right now given the increased demand for social and affordable housing during the COVID-19 pandemic.”

Proceeds from the 12-year Social Bond will go towards 10 community housing providers across New South Wales, South Australia, Tasmania and Victoria to develop 2,742 properties including 781 new dwellings. ANZ was joint lead arranger with UBS and Westpac for this bond, the third such bond NHFIC has issued in less than 18 months.

The housing sector’s response to COVID-19, together with state and federal governments, has demonstrated the benefits of a collaborative approach to improving access to shelter for all Australians. One of the key benefits of NHFIC’s bond issuance is that it allows the sector to leverage the support of the financial sector, build on state based incentives and harness the Federal government guarantee to maximise housing outcomes.

ANZ is committed to improving 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 AUD$50 billion commitment to fund and facilitate sustainable solutions for customers by 2025, including initiatives to help improve environmental sustainability, increase access to affordable housing and promote financial wellbeing.

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