The Treasury has released a draft investment mandate for how the National Housing Finance and Investment Corporation (NHFIC) will finance its two core functions: the Affordable Housing Bond Aggregator and the National Housing Infrastructure Facility. The NHFIC may also provide finance to support registered community housing providers (CHPs) develop their financial and management capabilities. With the aim of boosting Australia’s affordable housing stock, the Affordable Housing Bond Aggregator will aggregate loans for registered CHPs and issue bonds to institutional investors to raise finance at rates cheaper than bank loans. Ultimately the Bond Aggregator will be funded through its ongoing operations with support from an ongoing government guarantee.
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