Cbus Super, Australia’s leading building and construction industry super fund, has revealed it has committed over $950 million to Australian businesses through equity raising, debt finance and project financing since March 2020 to support Australia’s economic recovery. An extra allocation to the Cbus debt portfolio means Cbus now has a further $850M in additional capital to invest in companies and project finance.
Cbus has committed over $240 million in general corporate debt to Australian businesses and made serious moves into construction project financing by committing $260 million of debt funding for construction projects across Sydney and Melbourne including:
• In Melbourne funding of $160M for the development of over 390 new apartments and associated retail and commercial facilities over two locations in South Melbourne and the inner North East;
• $100M in a NSW based construction facility for a residential project close to the Sydney CBD.
Cbus has also injected over $450 million into Australian companies that were raising capital. This was done through a combination of its internally managed equity portfolios and externally managed mandates.
Cbus Chief Investment Officer Kristian Fok said that Cbus will continue to invest to support jobs and Australia’s critical infrastructure.
“As a long-term investor, Cbus is well placed to assist companies with the capital they need to keep operating and keep employing,” Mr Fok said.
“As the economic landscape has changed so rapidly this year, companies have had capital issues. This has provided an opening for Cbus to be a capital partner for companies that play an important role in the Australian economy while building better retirement outcomes for our members.”
“On the debt side, we are proud to have been able to step up and support shovel ready projects—particularly in Victoria during this difficult time.”
Cbus Super CEO Justin Arter said the fund was determined to assist businesses, deliver strong investment outcomes and back projects that spur employment.
“What you saw in Australia through the Global Financial Crisis (GFC) was the industry fund sector stepping up to the plate to provide business with capital,” Mr Arter said.
“Cbus is now a larger investor with significant investment talent and capability. This has allowed the fund to back a wider array of companies and projects.
“The value of superannuation as a national capital pool should not be understated. It is the envy of the world for good reason.”
