CBUS SUPER, a long-standing advocate for a housing bond aggregator, has invested $49 million in the latest National Housing Finance and Investment Corporate (NHFIC) bond issuance.
The bond will fund a number of large construction programs through Community Housing Providers (CHPs) in Victoria, Tasmania, NSW and South Australia. This is their third bond issuance. Cbus Super has invested in all three of NHFIC’s issuances, bringing its total investment to $88 million.
Cbus Super chief investment officer, Kristian Fok, said the success of the three rounds of NHFIC issuance showed the value of the innovative financing model.
“Cbus is delighted to once again support NHFIC as a cornerstone investor in their successful third affordable and social housing bond issuance,” Mr Fok said.
The issue today of $562 million is for 12 years, to include provision for construction funding of up to 2 years and term funding of 10 years. The issuance was well over-subscribed.
Mr Fok said, ‘“It is fantastic to see the tangible impact that NHFIC is having for CHPs by creating savings through lower interest costs and delivering construction of social and affordable homes. The 12 year timeframe will provide certainty to allow for some larger construction projects.”
The funds raised by the bond will be loaned to community housing providers (CHPs) to support the financing for properties across Australia, including supporting the supply of new social and affordable dwellings.
Mr Fok said, “As the leading super fund for the building and construction sector we are pleased to invest in NHFIC bonds that meet our investment risk-return criteria and fund new housing construction for Australians in need.”
“Cbus is pleased to be maintaining an ongoing commitment to the NHFIC programme and continues to explore other opportunities to partner with NHFIC," Mr Fok said.