HPC Housing Investment Corporation Completes Inaugural Offering
February 22, 2019
TORONTO – HPC Housing Investment Corporation (“HIC”) is pleased to announce that today it closed a C$33.1 million private placement of Senior Unsecured Series Notes (“the Notes”), the proceeds of which will be advanced to provide long term financing for affordable housing projects in Canada. The Canada Life Assurance Company is the sole investor in the Notes.
"Canadian affordable housing providers have not historically had access to the low-cost, long-term financing offered by the debt capital markets,” said Shayne Ramsay, Chair of HIC and Chief Executive Officer of BC Housing. “We are very excited to be providing this opportunity for our sector to effectively meet the growing demands for affordable housing across Canada."
HI-C anticipates that these Notes are the first of a much larger program that will ultimately finance a diverse portfolio of affordable housing projects across Canada. Standard and Poor's Rating Services assigned an "A-" issuer credit rating for the HIC Issuer Trust. In its rationale for issuing this rating to this new Canadian agency, Standard and Poor's stated that HIC’s business position is expected to “strengthen in the next two years as it builds its customer base.”
HI-C was created by the leadership of BC Housing, Manitoba Housing and Renewal Corporation (“Manitoba Housing”) and Ontario’s Housing Services Corporation ("HSC"), in partnership with Canada Mortgage and Housing Corporation (“CMHC”), to provide cost-effective long-term loans to non-profit Canadian affordable housing providers. MPA Morrison Park Advisors served as exclusive financial advisor to HI-C.
TD Securities Inc. and Scotiabank Capital Inc. acted as debt placement advisors and Agents for HIC's inaugural note issues, displaying their strong support for the affordable housing sector.
HIC was advised by a team from Gowling WLG. The Agents were represented by Dentons.
This press release contains certain forward-looking statements that are subject to important risks and uncertainties. Actual results may differ materially from the results indicated in these statements for a number of reasons. Hi-C disclaims any intention to update any forward-looking statements.
About HPC Housing Investment Corporation (HIC)
HPC Housing Investment Corporation is a new public-sector lender providing long-term funding to affordable and social housing providers in Canada. HIC is a federal non-share corporation with three founding members: BC Housing, Manitoba Housing and Ontario’s Housing Services Corporation. HIC aggregates the borrowing needs of eligible Canadian housing providers, and provides access to capital through the Canadian debt capital market. The corporation offers 30-to-40 year fixed-rate financing.
About Canada Mortgage and Housing Corporation (CMHC)
As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. For more information, please visit cmhc.ca or follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.
The first round of financing is valued at approximately $33 million for two projects in BC and Alberta:
95 East 1st Avenue - Community Land Trust, BC (CLT): A 15-storey, 135 home building, formerly part of the east end Olympic Village, which is now Vancouver’s latest housing co-operative development. In partnership with the City of Vancouver, the CLT is able to house more than half the homes targeted to low-to-moderate income families, couples, seniors and individuals with more than 10 homes at shelter rates. HIC is providing take-out financing for this project at a 40 year fixed rate
Parkdale Housing Development Project – Capital Region Housing Corporation, Alberta: Two buildings providing affordable housing to 136 low-to-moderate income families, couples, seniors and individuals in north-central Edmonton. HIC is providing a take-out financing for the two buildings, which were fully occupied at the end of 2018.
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