Cbus Super has announced the investment of $49 million in the National Housing Finance and Investment Corporate (NHFIC) bond issuance which will support a number of large construction programs through Community Housing Providers (CHPs) in Victoria, Tasmania, New South Wales and South Australia.
It was the third bond issuance for the NHFIC and Cbus has invested in all three rounds, bringing its total investment to $88 million.
The $562 million issuance, which was “well over-subscribed”, would run for 12 years to include provision for construction funding of up to two years and term funding for 10 years, the firm said.
The funds raised would be subsequently loaned to CHPs to support the financing for properties, including the supply of new social and affordable dwellings.
“It is fantastic to see the tangible impact that NHFIC is having for CHPs by creating savings through lower interest costs and delivering construction of social and affordable homes. The 12 year timeframe will provide certainty to allow for some larger construction projects,” Cbus Super’s chief investment officer, Kristian Fok, said.
“As the leading super fund for the building and construction sector we are pleased to invest in NHFIC bonds that meet our investment risk-return criteria and fund new housing construction for Australians in need.”
Fok assured that Cbus would maintain an ongoing commitment to the NHFIC programme and would continue to explore other opportunities to partner with NHFIC in the future.