The deal marks New Zealand's first-ever social bond issue by a local entity
Chapman Tripp has advised the Community Housing Funding Agency (CHFA) on its debut $200m social bond offer – marking a milestone in New Zealand’s financial markets as the first social bonds issued by a New Zealand entity.
According to a news release, the proceeds from the dual-tranche issuance will support social projects, including affordable housing initiatives across the country. Established by Community Finance, CHFA operates as a bond aggregator, providing large-scale, low-cost debt financing to community housing providers.
The issuance was evenly divided between $100m of five-year fixed-rate social bonds and $100m of three-year fixed-rate social bonds. Nineteen investors participated in the offer, 13 of whom were new to Community Finance. Total book volume at final pricing margins exceeded $235m, excluding lead manager interest.
“These social bond offerings represent a significant step forward for the New Zealand market. CHFA is the first new domestic sustainable bond issuer since 2023, reflecting a groundbreaking model for collaboration between private investors, social enterprise, and Government support to increase the delivery of social housing,” said Chapman Tripp partner Luke Ford, who led the finance team.
Chapman Tripp assisted in the establishment of CHFA and the structuring of the offer to align with government support announced earlier this year. Ford was supported by senior associate Hayden Reyngoud and solicitor Tom Yates. Partner Graeme Olding and senior associate Conor Tinker provided structuring and tax advice.
“We are immensely proud of the support that investors have shown for CHFA as we work to tackle New Zealand’s estimated $13 billion social housing deficit,” Community Finance chief executive James Palmer said.
ANZ served as lead manager for the offer, with Intemark acting as capital markets adviser and Public Trust as trustee and security trustee. Buddle Findlay advised ANZ, while Dentons Kensington Swan advised Public Trust.
