$200M Social Bond Marks Milestone for NZ Community Housing

In a landmark move for New Zealand’s housing sector, ANZ New Zealand has successfully priced the inaugural $200 million Social Bond issued by the Community Housing Funding Agency (CHFA).

This transaction represents a major step forward in addressing the country’s critical shortage of affordable and social housing, with over 19,000 households currently on the public housing waitlist and an estimated capital need of $13 billion.

The CHFA, a newly established funding vehicle supported by ANZ, is designed to channel wholesale capital into the community housing sector.

By aggregating the borrowing requirements of Community Housing Providers, CHFA enables the issuance of high-grade debt securities to wholesale investors, unlocking new funding streams for housing development.

“This transaction offers wholesale investors a unique opportunity to make a meaningful social impact while helping close the funding gap for Community Housing Providers,” said Stuart McKinnon, Managing Director, Institutional at ANZ New Zealand.

“It’s a win-win for investors and for the thousands of New Zealanders awaiting safe, affordable housing.”

This issuance also marks New Zealand’s first domestic Social Bond offering, broadening the appeal to investors with social impact and sustainability objectives.

CHFA’s debut social bond attracted 19 investors, including 13 new investors.

It raised $100m of 3-year and $100m of 5-year social bonds, for a total issue size of $200m, with an issuer rating of A+ from S&P Global.

ANZ played a pivotal role in bringing CHFA from concept to reality, having funded CHFA from the beginning and now acting as sole arranger and lead manager for the bond issuance.

“From inception through to supporting our inaugural social bonds, ANZ has been an outstanding partner. Its support has included providing working capital, guiding our Social Finance Framework and leading our social bond issuance,” said James Palmer, Chief Executive of CHFA.

“Crucially, ANZ has chosen to work alongside CHFA to address New Zealand’s housing crisis, showing that real impact comes not from acting alone, but from genuine partnership.”

With the A+ rating secured and the first Social Bonds issued, CHFA is now poised to expand its impact across New Zealand.

The partnership between ANZ and CHFA demonstrates how financial innovation and collaboration can address pressing social challenges, delivering tangible outcomes for communities in need.