California Health Facilities Financing Authority issued the largest ever social bond from a local authority or municipal issuer, raising a total of $500 million in November 2019.

The bonds were issued in 14 tranches, ranging in size from $28 million to $79.5 million. The maturity of the bonds ranges from June 2021 through to June 2034 and has various coupons between 1.896% and 3.034%.

The federally taxable social bonds were issued under California's No Place Like Home programme, which forms part of legislation signed in July 2016 and that aims to develop permanent supportive housing for homeless people that are also in need of mental health support services.

The proceeds of the bond were loaned by the state's Department of Housing and Community Development and in turn awarded to eligible counties for the acquisition, construction or rental rehabilitation of rental housing developments, a reserve for building operations and other related uses.

To be eligible for the funds, counties must commit to providing mental health support services to tenants for at least 20 years and to coordinate the provision of or referral to other services.

This issue was the first offering under the state's No Place Like Home programme, which has been designated $2 billion in funding.