ANZ leads $500 million HNZ bond

by Krizzel Canlas03 Apr 2019

Banking giant ANZ has announced its joint leadership of the Housing New Zealand (HNZ) sustainability bond of $500 million.

The 7.5-year bond, issued under HNZ’s sustainability financing framework, will be used to fund investment in new or upgraded sustainable social housing. The settlement date is April 05 with maturity of October 05, 2026.

“Social and affordable housing are areas that provide strong investment opportunities, and enable agencies such as Housing New Zealand to deliver high quality, healthy and sustainable housing, while aligning to the government’s commitments to international accords, such as the Paris Agreement and the UN’s Sustainable Development Goals,” ANZ Bank head of capital markets Dean Spicer said.

Read more: NZ's home affordability continues to decline

Last week, ANZ also jointly lead Australia’s National Housing Finance and Investment Corporation (NHFIC) of AU$315 million, at 10 year issuance. The proceeds of this will be used to fund community housing providers to develop social and affordable housing across Australia.

“I foresee bond issuance related to social and affordable housing becoming a relatively significant asset class of its own, alongside green buildings, low carbon transport and renewable energy, in both the Australian and New Zealand markets,” ANZ head of sustainable finance Katharine Tapley added.

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