The industry fund has committed almost $1 billion through equity raising, debt finance and project financing since March and has an extra $850 million ready to go.
Cbus has now committed $240 million in general corporate debt to businesses and $260 million of debt funding for construction projects across Sydney and Melbourne to support the economic recovery.
“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,” said CEO Justin Arter.
“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.”
The industry fund also injected $450 million into Australian companies through capital raises and has made additional allocations to its debt portfolio, freeing up a further $850 million in additional capital for companies and project finance.
“As the economic landscape has changed so rapidly this year, companies have had capital issues,” said chief investment officer Kristian Fok.
“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 has provided $160 million for the development of 390 apartments, along with associated retail and commercial facilities, in South Melbourne and the inner north-east, as well as $100 million in an NSW-based construction facility for a residential project close to the Sydney CBD.
“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.
The news comes as Industry Super Australia (ISA) warns that freezing the SG increase will mean industry funds would be unable to spend a projected $33 billion on infrastructure to aid the recovery.
“Our economic recovery and workers’ dignity in retirement both hinge on stable and optimal policy settings including the promised super guarantee rise and preserving savings for retirement,” said ISA chief executive Bernie Dean.
“Industry fund members are deeply invested in Australia’s future which is helping to rebuild their retirement savings, keep businesses in business and Australians in jobs.”