Standard Bank supports TUHF’s new Urban Ubomi 2 securitisation structure

The bank acted in its capacity as the sole arranger and dealer, facilitating the private placement that attracted funding of R 573m across 4 tranches of notes.

These notes are listed on the sustainability segment of the JSE as social bonds, and this bespoke programme complies with EU Securitisation Regulations, attracting foreign investor participation in the initial issuance. This landmark transaction marks a significant milestone for TUHF, furthering their funding goals and advancing growth in the affordable housing market.

Since 2021, SBSA has played a crucial role as the sole arranger and dealer for both Urban Ubomi 1 (RF) and Urban Ubomi 2 (RF), helping TUHF raise R 2.2 billion through public issuances. The bank continues to support TUHF as the debt sponsor and settlement agent for each issuance.

The new Urban Ubomi 2 structure mirrors Urban Ubomi 1 while incorporating key enhancements. The bank served as the sustainability structuring agent, advising TUHF on its renewed sustainable finance framework, enabling the Urban Ubomi 2 to issue social bonds on the JSE's sustainability segment. This programme funds township developments, an increasingly profitable asset portfolio, bolstering TUHF's impact lending initiatives.

The new programme is strategically designed to align with TUHF’s business development goals, supporting future origination and funding strategies. As a specialised lending institution, TUHF provides loans to SMEs and entrepreneurs for constructing and refurbishing residential housing in inner cities.

Through its initiatives, TUHF aligns its sustainability strategy with the United Nations Sustainable Development Goals, focusing on urban regeneration and socio-economic development in South Africa’s underserviced cities.

“The bank is proud to be associated with TUHF, who are making significant strides in urban regeneration and contributing to socio-economic development in South Africa. We are committed to helping TUHF achieve their funding objectives by growing their presence in the securitisation market and partnering on further growth initiatives,” said Demisha Pillay, debit capital markets spokesperson at SBSA.

Standard Bank is proud to partner with an organisation that is making significant strides in the affordable housing sector by financing inner-city developers. This collaboration aligns with our vision of driving sustainable growth, enabling more South African citizens to access safe and affordable housing, contributing to stronger, more resilient communities.