Well received by investors, the bonds – a A$315 million social bond for NHFIC and two wellbeing bonds for HNZ (NZ$500 million and NZ$600 million) – set benchmarks as the first ever capital markets issue for NHFIC and the first wellbeing bonds for HNZ.

A relatively new type of financing, social bonds are structured so the proceeds fund a social purpose. In this case, owning a NHFIC or HNZ bond is an indirect investment into Australia and New Zealand’s social and affordable housing sector. The return is based on the credit-worthiness of the borrower who is responsible for directing the financing to social causes, with an obligation to report accordingly.

Access to housing has a huge impact on people’s ability to thrive socially and economically, as well as to feel secure and be part of
a local community.

According to ANZ CEO Shayne Elliott, “One of the areas in which we can impact the community is in the area of housing. This is not about charitable works, it’s about bringing the full force of ANZ, one of the largest financial institutions in the country to bear; to have an impact and to shape the world for good.”

Partnering with NHFIC and HNZ allowed ANZ to join forces and draw on each organisation’s expertise in order to deliver better outcomes for a range of stakeholders.

Left to right: Nathan Dal Bon – Chief Executive Officer, National Housing Finance and Investment Corporation, Caryn Kakas – Head of Housing Strategy, Group Strategy, ANZ and Tessa Dann – Associate Director, Sustainable Finance, ANZ.