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Minister Bishop announced Government support for the Community Housing Funding Agency (CHFA) at the KangaNews-ANZ New Zealand Capital Market Forum last week.
The CHFA has been launched by Community Finance to provide large-scale, low-cost debt financing to New Zealand’s Community Housing Providers (CHPs) through a funding agency model.
Chapman Tripp assisted to structure and establish the CHFA. It is designed to bring together philanthropists, fund managers and other wholesale investors, Government funding, and leading charities to unlock social investment at scale.
Finance Partner Luke Ford, who leads the team advising Community Finance, said, “It's fantastic to see Government support, accelerating the CHFA’s opportunities to grow and attract a broad investor base.
“This reflects the years of hard work that Community Finance has put into supporting the CHP sector and connecting it with private capital. We look forward to seeing the CHFA’s entry into the New Zealand bond markets and the opportunities it provides New Zealand.”
The Chapman Tripp finance team also includes Senior Associate Hayden Reyngoud and Solicitor Tom Yates. Partner Graeme Olding provides structuring and tax advice, with Senior Associate Conor Tinker.
Community Finance Chief Executive James Palmer said, “Luke, Graeme and the Chapman Tripp team have supported us throughout the growth of our lending to many of New Zealand’s leading charities in the housing space and as more KiwiSaver providers and fund managers have become bondholders, from smaller issuances and onto this next exciting stage.
“The CHFA builds on models used by other bond aggregators locally and internationally. We have been grateful for the benefit of Chapman Tripp’s deep bond market knowledge, first class legal expertise and commercial approach as we work to bring the CHFA to market and tackle New Zealand’s estimated $14 billion social housing deficit.”
ANZ provides lending and arranging services to the CHFA. Public Trust acts as trustee and security trustee.
Chapman Tripp’s specialists are active in the sustainable and impact finance space, and have advised on a range of industry-leading debt products including:
- IIX’s Women’s Livelihood Bond, the world’s first ‘orange bond’ focusing on empowering approximately 300,000 women and girls in emerging markets across Asia and Africa
- IFC’s first social Kauri bond, used for projects that benefit women-owned enterprises, inclusive business projects and other social projects, and
- New Zealand’s first sovereign green bonds and development of the New Zealand Sovereign Green Bond Framework.
