Circle Anglia commended on bond issue

Published by Ross Macmillan for 24dash.com in Housing

Circle Anglia, one of the UK’s leading providers of affordable housing, has been awarded a special commendation in the Bonds category of the Deal of the Year Awards.

The Association of Corporate Treasurer’s (ACT) Deal of the Year 2010 Awards are the only awards where the entries are judged by fellow practitioners. Circle Anglia’s 2010 bond issue was commended for demonstrating innovative features and flexible treasury management.

In a first for housing association finance, Circle Anglia raised £124m at a yield of 5.39% following a tap issue to its £275m 2038 fixed-rate bond. The issue was brought to UK institutional investors without an investment bank managing the process. TradeRisks acted as arranger and sole book runner to Circle Anglia in relation to this transaction. The company achieved an outstanding result in pricing terms despite challenging market conditions, in particular investors digesting the implications of the Comprehensive Spending Review on the housing sector.

Nathan Dunton, Director of Corporate Finance, said: “The commendation is recognition that innovative methods of funding can be achieved in tough economic times. The way this deal was brought to market is the first of its kind in the UK and we are pleased that it has been recognized by our peers in the ACT.”

The bonds are secured by assets and guarantees provided by the nine housing associations within Circle Anglia’s funding group, Circle 33, Mole Valley, Old Ford, Roddons, South Anglia, Wherry, Merton, and Mercian and Russet. The bond was issued through Circle Anglia’s capital markets issuance vehicle Circle Anglia Social Housing PLC.