National Housing Finance Investment Corporation (NHFIC) Social Bond
|Primary impact area||Impact area||Geographic location of impact||Investment commencement||SDG alignment|
|Social||Housing & Social Real Estate||Australia||2019||
In Australia housing supply has not kept up with demand, particularly in major metropolitan areas, impacting the ability of Australians to find affordable accommodation. The Australian Government established the National Housing Finance and Investment Corporation (NHFIC) in 2018 to improve housing outcomes for all Australians.
The NHFIC operates the Affordable Housing Bond Aggregator - which provides cheaper and longer-term secured finance for Australian Community Housing Providers (CHPs) by issuing bonds in Australia’s debt capital markets.
In 2019, NHFIC issued two social bonds to support loans to CHPs which increase the supply and quality of social and affordable housing, maintenance of social housing and social wraparound services.
Tenants and residents in social housing include low-income tenants, young people, people with disabilities, older women over 55, and vulnerable and disadvantaged families and individuals.
Wrap around services for tenants range from youth services and employment services, financial and literacy skills training, training and employment counselling, to mental health support and services to address domestic and family violence.
QBE supported both of NHFIC’s bonds issued in 2019 which enable investment in social and affordable housing at an institutional investor scale. By the end of 2019, the combination of both bond issuances brought the total value of loans the NHFIC Board had approved to more than AUD 830 million, supporting the delivery of more than 1000 new, and 3600 existing, social and affordable homes, ultimately benefiting tenants on lower incomes.