Household Capital secures $300 million financing from Citi and IFM

17 December 2021

Household Capital, a leading Australian provider of home equity retirement funding, today announced
the completion of a $300 million financing package provided by Citi, one of the world’s biggest banks,
and IFM Investors, the industry super-owned global fund manager.

The innovative securitisation debt facility will allow Household Capital to continue to meet the
increasing demand from retired Australian homeowners who are seeking responsible, long-term
funding for their retirement needs --- a segment of the market which has more than $1 trillion in home
equity available today.

“Household Capital is an innovator in home equity retirement funding with a clear values-based focus
on customer outcomes,” said Joshua Funder, Chief Executive Officer of Household Capital.

“We originate responsible, long term, low risk Australian residential mortgages, enabling retirees to
access some of the equity in their home to achieve a more secure and dignified retirement,
recognising the family home can be both the best place to live and a way to fund retirement.

“In partnering with Citi and IFM Investors, we are making access to home equity more efficient, more
available and more reliable for retirees. This funding facility delivers Australian retirees low interest
rates which mean more access to their home equity retirement funding.”

Household Capital Chair Nick Sherry said that despite Australia’s world-class superannuation system,
the family home has always been a missing link in the nation’s retirement funding system.

“The wealth of baby boomers is mostly tied up in their home,” said Mr Sherry.

“Australian seniors need ubiquitous, responsible, long-term, and efficient access to home equity.”
Mr Sherry said Household Capital’s partnership with Citi and IFM Investors is a game changer in
delivering back to Australians their own wealth.

“We were delighted to work with Household Capital and IFM to develop an innovative securitisation
structure that balanced the needs of Household Capital, Citi and IFM’s investment requirements,” said
Will Mortimer, Managing Director and Head of Citi’s Financing and Securitisation team for Australia &
New Zealand.

“The facility will refinance Household Capital’s legacy funding arrangements and ultimately deliver a
more cost effective, long term and scalable funding solution to Household Capital to help grow their
business.”

Hiran Wanigasekera, Executive Director, Debt Investments, IFM Investors, said: “We believe that our
investment will help generate risk adjusted returns for our investors, while delivering a social dividend
for retired Australians. By working with Household Capital, we are able to directly support the quality
and availability of retirement housing and funding.”

Stella Choe, Managing Director and Head of Corporate Banking Citi Australasia hopes that the
financing package helps Household Capital to deliver much needed retirement support to elderly
Australians. 

“We are proud to partner with Household Capital, a leading reverse mortgage funder in Australia, to
deliver much needed retirement funding to Australians, and help address the challenges faced by the
Australian Government in housing and funding a growing cohort of aging Australians,” said Ms Choe.

Mr Funder said that Household Capital was focused on responding to the Australian Government’s
Retirement Income Review and Retirement Income Covenant, both of which highlighted the important
role home equity can play in meeting people’s financial needs in retirement.

“This funding package is an endorsement of our approach and will help us continue to deliver on our
mission: to help retired Australians Live Well At Home,” said Mr Funder.

“Already Household Capital has transformed the lives of thousands of retired Australians and this
facility will enable us to help thousands more have confidence in their retirement housing and
funding.”

Co-author of the Retirement Income Review and chair of Household Capital’s advisory board,
Professor Deborah Ralston, said: “For most people retiring today who haven't really enjoyed the full
benefits of superannuation over their working lives, their home represents a considerable part of their
net wealth.

“The baby boomers coming through to retirement want to know that they can have a good quality
retirement and feel confident and happy that they can use their resources well, including home
equity.”

About Household Capital
Household Capital is an Australian-owned independent retirement funding provider founded in 2016
with a mission to help retired Australians ‘Live Well at Home’. It offers retirees a responsible,
sustainable, and flexible financial solution that allows them to bundle their superannuation savings,
equity in their home and their Aged Pension to achieve their retirement goals while continuing to live
at home. www.householdcapital.com.au