Australia’s largest not for profit community housing provider, Community Housing Ltd (CHL) is pleased to announce that it has been successful in securing over 10% of the National Housing Finance and Investment Corporation’s (NHFIC) inaugural $315 million bond issue offering low cost finance to community housing providers.
The provision of $35 million in low interest finance will provide CHL with added financial capacity that will free up company’s revenue which it anticipates will assist in the delivery of more than 200 affordable homes over the next five years.
“An absolute landmark for the industry, this NHFIC initiative will have positive implications for the social and affordable housing sector as well as the Australian public,” CHL Managing Director, Steve Bevington said.
“Access to such significant long-term and low interest finance will add to our existing capacity and give us much-needed financial impetus by freeing up revenue to fund an increased level of financing. This will enable us to deliver a lot more affordable housing for those who need it the most in areas where there is significant shortage.”
The NHFIC is offering finance for over 10 years at less than 3% interest rate, significantly cheaper compared to traditional bank finance.
“This low-cost loan will deliver $6 million in interest savings to CHL. In the not-for-profit sector, money is always tight and there is never enough of it to enable us to meet demand, so this financing is both significant and very welcome as extra money will go towards adding more housing stock.
The NHFIC should be congratulated for this initiative which is the largest ever announced in Australia to date”, Steve Bevington said.CHL is one of six successful community housing providers to receive the share of finance under this bond issue.
About NHFIC: NHFIC is an independent Commonwealth entity that operates the Australian Affordable Housing Bond Aggregator which provides cheaper and longer-term secured finance for community housing providers (CHPs) by issuing bonds in Australia’s debt capital markets.
https://nhfic.gov.auAbout CHL: CHL is a national not for profit provider of community and affordable housing to those disadvantaged through market failure. In Australia, the Group manages over 11,000 properties across six states through its extensive network of 21 offices. It also develops affordable housing overseas and has offices in Timor Leste, Chile, PNG, Rwanda, Peru and India.
CHL’s service offering is diverse from providing pathways out of homelessness to crisis, transitional and long term housing, property development, tenancy and property management and community development to a wide cohort of people in need. www.chl.org.au