Investor Relations - Social and Sustainability Bonds

How we work

Housing Australia’s Affordable Housing Bond Aggregator (AHBA) business aggregates funding requirements from community housing providers (CHPs) and finances them primarily by issuing long-term social and sustainability bonds. The bonds are guaranteed by the Australian Government and have a AAA (stable) credit rating from Standard and Poor’s. The net proceeds of the bond issuance are used to provide loans to registered CHPs. 

The AHBA uses this ‘pass-through’ model to provide concessional financing to CHPs at lower-cost and longer-term compared to traditional sources of funding. 

This assists CHPs by providing greater funding certainty and lowering finance costs, which enables CHPs to expand their operations and increase the supply of affordable housing. The issuance of social and sustainability bonds also facilitates greater private and institutional investment in the sector. 

To support the AHBA, the Australian Government has provided a line of credit that Housing Australia may use to advance initial loans to CHPs prior to issuing bonds. Loans financed by the line of credit will subsequently be refinanced by Housing Australia issuing a social or sustainability bond when there is sufficient scale to access Australian debt capital markets.  

The bond aggregator model has international precedent. It is currently used in countries such as the UK where it operates as a tried, tested and successful means of providing efficient finance for social and affordable housing. 

For any bond or investor related questions, please email: bonds@housingaustralia.gov.au 

Awards and recognition

• Housing Australia's second bond of $315 million (issued in November 2019) was awarded 'Social Infrastructure Deal of the Year' in The Asset's Triple A Infrastructure Awards 2020.
• Housing Australia was recognised by financial publication KangaNews as the 2019 Australian Government-Sector Issuer of the Year.

Social and Sustainability bond issuances

By issuing Social and Sustainability bonds Housing Australia is able to deliver on our purpose of:

• Strengthening efforts to increase the supply of housing 

• Encouraging investment in housing (particularly in the affordable housing sector) 

• Providing loans and grants and issuing guarantees that complement, leverage or support Commonwealth, state or territory activities relating to housing  

• Contributing to the development of the scale, efficiency and effectiveness of the community housing sector in Australia. 

Bond issuances to date

Since March 2019, Housing Australia has issued over A$2.8 billion in social bonds and sustainability bonds.

Housing Australia has issued seven bonds:

Social Bond Reports

Housing Australia's Social Bond Reports provide information on the use of proceeds from Housing Australia’s social and sustainability bond issuances and demonstrates the impact that its transformative financing is achieving in improving housing outcomes. The reports form a key disclosure requirement under Housing Australia’s Sustainability Bond Framework.

Sustainability Bond Framework

Housing Australia has developed a Sustainability Bond Framework aligned with the International Capital Market Association’s (ICMA) Social Bond Principles (SBPs), Green Bond Principles (GBPs) and Sustainability Bond Guidelines (SBGs). 

The Framework are governed by ICMA’s four core principles: 

• The use of proceeds of bond issuances
• The process for evaluation and selection of AHBA loans financed or refinanced by the bond
• The management of the bond proceeds
• The form of reporting Housing Australia will undertake.

Download the Sustainability Bond Framework here.

External verification

Housing Australia follows market best practice by submitting the Framework and its processes for external verification by an independent assurance provider. 

Ernst & Young provides pre-issuance and post-issuance assurance to confirm that Housing Australia’s social and sustainability bonds are, in all material aspects, in accordance with Housing Australia’s Sustainability Bond Framework.  

The annual post-assurance statement is included in Housing Australia's Social Bond Report released annually in October.  

Pre-Issuance Assurance Statements

• Bond 1
• Bond 1 - Tranche 2
• Bond 2
• Bond 3
• Bond 4
• Bond 4 - Tranche 2
• Bonds 5 and 6
• Bond 7
• Bond 7 - Tranche 2 

Refer to the Social Bond Reports for Post-Issuance Assurance Statements.