Overseas buyers scramble with locals for sustainable housing bonds

“There is a larger group of foreign investors than we had before,” said NHFIC chief executive Nathan Dal Bon. The Australian Financial Review.

“There seem to be a lot of ethical investors in there – I feel like there are a lot of funds with a specific purpose.”

The joint leaders were ANZ, CBA, Deutsche Bank, UBS and Westpac.

This issue, longer than NHFIC’s previous 10, 10.5 and 12 year bonds, was part of a range of instruments that, in the coming weeks, would likely expand further to include a floating rate product. used to fund community housing project.

“For this particular case, the grade also reflects the strong preference of the underlying investment by the consortium,” said Mr. Dal Bon.

The bonds mean that the CHL will pay a fixed rate of 2.335% on its 15-year interest loans only, saving the provider about $ 50 million in interest payments compared to trade finance rates and provide a return to the CHL of approximately $ 200 million over the 40-year life of the project.

Steve Bevington, managing director of community housing provider CHL, which is part of the consortium that will operate the commercial and social housing to be developed at the three Melbourne sites, said the role of NHFIC, the so-called bond aggregator, had already reduced its borrowing costs.

“Our average experience before the NHFIC came in was that we were looking for over 4%,” Bevington said. “If a few years ago it would have been less than 3% and now it is approaching 2%.

The current period presented a good opportunity to lock in low borrowing costs before they rise again, he said.

“We’re in a different scenario right now and it’s very favorable, but we don’t expect to have 10 to 15 year fixed rate deals in the future,” Bevington said.

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