Investor relations

NHFIC and the Bond Aggregator

NHFIC commenced operations on 30 June 2018. Its purpose is to improve housing outcomes for Australians by contributing to efforts to increase the supply of housing, particularly affordable housing.

More information on NHFIC, its purpose, Investment Mandate and how it operates can be found here.

The Affordable Housing Bond Aggregator

NHFIC uses a bond aggregator model to issue social bonds in the capital market. The proceeds of a social bond issuance are used to provide loans to registered community housing providers (CHPs).

This model enables NHFIC to provide concessional funding arrangements to CHPs by providing lower-cost and longer-term finance solutions compared to traditional sources of funding. The issuance of social bonds also facilitates greater private and institutional investment in the sector.

The AHBA uses this ‘pass-through’ model to provide greater funding certainty and lower finance costs to CHPs.  This assists CHPs to expand their operations and the supply of affordable housing. 

To support the Affordable Housing Bond Aggregator (AHBA), the Australian Government has provided a $1 billion line of credit that NHFIC may use to advance initial loans to CHPs prior to issuing bonds. Loans financed by the line of credit will subsequently be refinanced by NHFIC issuing a social bond when a critical mass of such loans have been advanced.

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.

Investors have the opportunity, through the purchase of social bonds issued by NHFIC, to combat the significant and prevailing funding gap in Australia’s community housing sector. 

You can find more information on the AHBA here.

Our operating model

You can find further information on housing affordability in Australia and CHPs here.

Further information on NHFIC’s bond issuance program can be found here.

Relevant information about NHFIC

For further information on NHFIC, please refer to the following:

• Corporate Plan 2019 – 20
• Annual Report 2018 – 19
• Social Bond Report 2018 – 19
• AHBA factsheet
• NHIF factsheet

For further bond or investor related questions, please email bonds@nhfic.gov.au