Housing Group raises £250 million from bond issue
Published by Max Salsbury for 24dash.com in Housing and also in Finance
The Together Housing Group has raised £250 million through the issue of a 30-year own-name public issue bond.
Potential investors showed lots of enthusiasm, with the order book standing at over £1 billion within an hour of the issue opening.
Based on a first day issue of £200 million, this meant the bond was five times oversubscribed.
Together Housing - which manages 35,000 homes - issued the bond with an interest repayment rate of 4.5%.
The Group issued the bond on the back of an AA3 rating by the ratings agency Moody’s.
Victor Flynn, Group Director of Corporate Funding, said: “The bond issue will provide us with funding to build new homes, to take advantage of new opportunities, and to grow and develop our business in many new and exciting ways.
“Within an hour of the launch, we had over £1billion on the order book, and that helped us tighten the margins, and showed the confidence our investors have in an organisation that is still less than two years old.
“It shows we’re making a huge mark in the social housing sector, and the Together Bond will stand us in good stead for the future.”