Hume secures $35m with NHFIC's first finance deal
Thursday 31 January 2019
The National Housing Finance and Investment Corporation (NHFIC) has made its first finance commitment of $35 million to Hume Community Housing.
Hume is one of the largest Tier 1 community housing providers in New South Wales, managing approximately 2,000 dwellings in Western Sydney, with secured growth into the Hunter region to manage a further 2,200 homes. Hume will use the $35 million in NHFIC loan finance to support their ongoing operations providing affordable homes and services to over 9,000 customers.
NHFIC is an independent corporate Commonwealth entity dedicated to improving housing outcomes, with a focus on affordable housing.
The $35m NHFIC loan, which is subject to final documentation and conditions, will be provided under NHFIC’s Affordable Housing Bond Aggregator (AHBA) and will enable Hume to access low- interest and long-term finance. Through the AHBA, NHFIC will continue to provide greater funding certainty and enhanced cash flow to support the growth of the community housing sector.
NHFIC CEO, Nathan Dal Bon said: “NHFIC is very pleased to announce that Hume will be the first community housing provider to access NHFIC finance”.
“Hume and its CEO, Nicola Lemon, were strong supporters of the establishment of NHFIC and we are delighted that Hume will be able to utilise the benefits that NHFIC finance offers,” Mr Dal Bon said.
Hume Community Housing CEO, Nicola Lemon said: “We are exceptionally pleased with the work we have been doing with NHFIC to spearhead this new source of finance as it represents an important milestone, not only for Hume but for the entire sector. Once formally in place, we will benefit from access to lower-priced finance and greater certainty in terms of future financing costs”.
“This announcement is both welcome and timely as Hume is undergoing a period of significant growth. We will be improving the lives and well-being of thousands more households. The access to NHFIC financing and the cost benefits derived will go a long way to assist us deliver on our purpose, to create opportunities for our customers to prosper, through the provision of outstanding homes and quality services,” Ms Lemon said.
NHFIC operates the AHBA to provide better funding solutions for registered community housing providers. The AHBA aims to provide cheaper and longer-term secured finance for community housing by issuing bonds in capital markets.
NHFIC’s first financing commitment with Hume is a significant milestone towards NHFIC building a substantial loan portfolio with community housing providers that will enable NHFIC to issue its first affordable housing bond in the coming months.