The Generate KiwiSaver Scheme has become the cornerstone impact investor in The Salvation Army Community Bond. The
transaction – facilitated by Community Finance – means they are the first KiwiSaver provider to invest into the creation
of these 118 new, warm, dry and secure houses for families without homes.
The Community Bond is a fixed interest, 5-year impact investment yielding 2.30% per annum and delivers investors a sound
investment return and social impact.
Impact investment refers to investments made into companies, organisations, assets and funds with the intention to
generate a positive social or environmental impact alongside a financial return.
“We have decided to make this impact investment because it is the right thing to do for our KiwiSaver investors and for
New Zealand in this time of great need”, said Sam Goldwater, Executive Director and Lead Portfolio Manager at Generate.
“With this first impact investment, Generate is proving how large institutional investors can balance achieving
competitive returns and enabling positive social outcomes. We hope others will follow our lead.”
The Salvation Army Community Bond is the first project by Community Finance, an impact investment platform established
in 2019 to catalyse social and environmental change in New Zealand. The platform operates by matching investors with
specific projects; in this case social and community housing, and making it easier for organisations to provide impact
investments. Through Community Finance, $34.4 million has now been advanced to The Salvation Army, making Community
Finance the largest open impact investment platform in New Zealand.
Community Finance Chief Executive James Palmer said, “We are thrilled to partner with Generate as the leading investor
in this Community Bond, which will enable more life-changing work to be done for families in need in Aotearoa, New
Zealand. The need has never been greater for our country to get behind the community housing providers on the front
line, tackling the growing public housing waiting list. Community Finance is proud to provide a bridge between
responsible investors and projects like this, delivering lower cost finance and social impact.”
Generate joins a range of existing leading impact investors in this Community Bond, including $5 million investments
from both the Tindall Foundation and Lindsay Foundation, and $2 million from both Foundation North and Matua Foundation.
This project represents a significant commitment from the Salvation Army to develop new housing on their land holdings
in urban centres across the country. National Director of The Salvation Army Social Housing, Greg Foster, says the Army
is very grateful for the investment. “The Army is delighted to be partnering with Generate KiwiSaver through The
Salvation Army Community Bond. We have a large, new housing construction programme across the country and the only
significant barrier is access to construction finance on terms that work. The investment is a winner for all parties,
The Salvation Army will be able to use the investment to build more social housing, and Generate KiwiSaver will be
receiving a competitive return for their investment, while knowing that the funds are being used to address urgent
social and housing needs in the community. This set of arrangements means more and more families who are currently
living in garages, or are bunking down with family members are going to get to live in their own warm, dry and safe
home, within a thriving community setting. We are thrilled for these families, and it will be life changing for them.”
Barry Coates, Founder and CEO of Mindful Money, says: “Affordable housing was a major challenge before COVID, and now it
is even more urgent. We congratulate Generate KiwiSaver for stepping up to help fund the Salvation Army’s programme.
This is an example of investment for good – earning a sound return while making warm and healthy homes available to
those who need them.”
Scott Figenshow, Chief Executive of Community Housing Aotearoa, is also celebrating this impact investment: “This
cornerstone investment is exactly what is needed to grow a long-term, stable finance option to support affordable home
supply through community housing providers. We need a different approach from investors who have a shared understanding
of the value of safe, secure and affordable housing for NZs. Congratulations to Community Finance for leading this great
initiative, to Salvation Army as a community housing provider committed to building many more affordable homes, and to
Generate KiwiSaver for being the first to make such a significant investment.”ABOUT GENERATE
Generate is one of the fastest growing KiwiSaver providers, with a focus on delivering strong performance and
responsible investment. Generate strives every day to inform and empower Kiwis to make smart KiwiSaver decisions that
can improve their futures. Generate has consistently achieved 1st, 2nd and 3rd performance rankings in industry league
tables, while also supporting members’ communities and the environment that we live in.