Citi and IFM invest $300 million into Household Capital

Household Capital, a home equity retirement funding provider, has benefited from a $300 million financing package provided by Citi and the industry super-owned fund manager, IFM Investors.

The securitisation debt facility would allow Household Capital to continue to meet the increasing demand from retired Australian homeowners seeking to use equity in their home for retirement expenses.

Household Capital chief executive, Joshua Funder, said “In partnering with Citi and IFM Investors, we are making access to home equity more efficient, more available and more reliable for retirees. This funding facility delivers Australian retirees low interest rates which mean more access to their home equity retirement funding”.

Related News:

The facility would refinance Household Capital’s legacy funding arrangements to deliver a more cost effective, long term and scalable funding solution to Household Capital to help grow its business.

Funder said the business was focused on responding to the Australian Government’s Retirement Income Review and Retirement Income Covenant.

“This funding package is an endorsement of our approach and will help us continue to deliver on our mission to help retired Australians Live Well At Home,” said Funder.

“Already Household Capital has transformed the lives of thousands of retired Australians and this facility will enable us to help thousands more have confidence in their retirement housing and funding.”

Co-author of the Retirement Income Review and chair of Household Capital’s advisory board, Professor Deborah Ralston, said: “For most people retiring today who haven't really enjoyed the full benefits of superannuation over their working lives, their home represents a considerable part of their net wealth.

“The baby boomers coming through to retirement want to know that they can have a good quality retirement and feel confident and happy that they can use their resources well, including home equity.”

IFM Investors, executive director debt investments, Hiran Wanigasekera, said: “We believe that our investment will help generate risk adjusted returns for our investors, while delivering a social dividend for retired Australians.

“By working with Household Capital, we are able to directly support the quality and availability of retirement housing and funding.”

Citi managing director and head of corporate banking Australasia, Stella Choe, said: “We are proud to partner with Household Capital, a leading reverse mortgage funder in Australia, to deliver much needed retirement funding to Australians, and help address the challenges faced by the Australian Government in housing and funding a growing cohort of aging Australians”.




Recommended for you

Author

Comments

Add new comment