The Housing Finance Agency plc (HFA), a limited company that falls under the umbrella of the Ministry of the Environment and Local Government, and is wholly owned by the Minister of Finance, is to raise €2.5 billion through a Euro commercial paper (ECP) programme.
The proceeds of the ECP issue are to be used to advance loans to local authorities and approved voluntary bodies in Ireland for housing purposes, as well as for infrastructure ancillary to social housing provision.
HFA’s primary function is to borrow or to raise funds that are on-lent to Irish local authorities. These loans are then used to finance activities, such as mortgages to lower-income households and the acquisition of land for affordable housing, as authorised by the various Housing Acts. HFA’s total loan book more than quadrupled to €2.9 billion at year-end 2005, from €622 million in 1996.
The programme received an A-1+ rating from Standard & Poor’s, based on the Government’s unconditional and irrevocable guarantee on the program.
The Minister of Finance of Ireland has granted an irrevocable and unconditional guarantee of the punctual payment on demand of all monies due. |
