On March 17, 2021, HPC Housing Investment Corporation ("HIC") announced that it had closed a $40 million social bond offering as part of its new Construction Lending Program, that will provide long-term financing for affordable housing projects across Canada.
First to benefit from this new lending program is Capital Region Housing’s Londonderry mixed use redevelopment project. Located in central Edmonton, the redevelopment will replace the existing 80 units with 240 new 2- to 3-bedroom apartments and 1-, 3-, 4- and 5-bedroom townhomes. Financing consists of a blended construction and take-out loan with a term of 40.25 years.
The financing for this project was secured by HIC through the private placement of Senior Unsecured Amortizing Social Notes, Series C with The Canada Life Assurance Company being the sole investor.
The new Construction Lending Program adheres to HIC’s Social Financing Framework, which complies with the Social Bond Principles developed by the International Capital Markets Association in June 2020. HIC anticipates the new lending program will become a large component in the institution’s portfolio as affordable housing providers across Canada seek to develop new affordable housing.
Gowling WLG advised HIC with respect to the bond offering and the loan transaction with Capital Region Housing Corporation, with a team that included Bryce Kraeker and Radhika Vaidyanathan (corporate/securities), Sarah Crowe, Emma Clarke, Mike Hrabok and Drew Hubka (real estate/lending), and Colin Green and Carole Chouinard (tax).