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Published: Thursday, 21 November 2019 17:19

Bridge Housing will continue its portfolio growth thanks to a second bond issued by the National Housing Finance and Investment Corporation (NHFIC). 

CEO John Nicolades said: “Access to finance through the NHFIC has enabled Bridge Housing to borrow and invest in housing at an interest rate substantially lower than that available to us in the private banking system. This means we can deliver more housing for even more people seeking social and affordable housing. NHFIC's second bond issue shows its strong confidence in the community housing sector capacity and delivery."

The $51m is part of the $315m second bond issue that was announced yesterday by NHFIC CEO, Nathan Dal Bon and represents an additional $11 million in funding above the initial $40m that Bridge Housing secured earlier in the year. The total $51m is provided as a 10.5-year interest-only loan at 2.07% p.a. and represents a further 20 basis points interest rate saving from the interim rate received on the initial $40m secured in July 2019. 

The extra $11m in debt will be used to fund recent acquisitions in Ashfield and Marrickville to provide 22 affordable dwellings to secure well-located social and affordable housing for low-to-moderate income families.  

In July, Bridge Housing was the first community housing provider to secure NHFIC finance for development activity. The NHFIC’s second bond issue of $315 million will enable seven community housing providers (including Bridge) to finance over 2,000 properties nationally, including more than 360 new social and affordable dwellings. 

Mr Dal Bon said: “NHFIC is very pleased with the strong level of demand from both local superannuation funds and offshore investors for its bonds and to see CHPs from around Australia benefitting from NHFIC’s finance."

Photo: Assistant Treasurer Michael Sukkar with residents at Elger St Glebe in July.