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UK's biggest HA raises £150m for development

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UK's biggest HA raises £150m for development

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Published by Max Salsbury for 24dash.com in Housing and also in Development, Finance

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Image: Money via Shutterstock

Social landlord Sanctuary Group has raised £150 million through a public bond issue.

The funds will be used to deliver the 95,000-home provider's ongoing development programme.

The deal brings the total amount raised by Sanctuary on the markets in the past two years to £450m. A £300m bond was issued in April 2012 and is due in 2047.

Barclays and Lloyds Bank acted as joint lead managers on the transaction, for which Sanctuary, the UK's largest social landlord, was awarded credit ratings of AA- from Standard & Poor’s and A1 from Moody’s.

Craig Moule, Sanctuary's chief financial officer, said: “This latest round of funding will ensure that our residents continue to receive the best possible service and see the quality of their homes improved. The strong credit ratings we have been awarded, along with the appetite for the bond, demonstrates the confidence investors have in our business plan and prospects for the future. We will continue to consider the bond markets as a way to raise finance for our development plan.”

Jeremy Froud, managing director of debt capital markets at Barclays, added: "This transaction proved the tremendous support that exists within the Sterling bond market for both Sanctuary Group and the broader housing association sector. Sanctuary was able to complete this transaction at an historically attractive price despite recent credit ratings downgrades across this sector and continuing uncertainty about the implementation of welfare reforms. This is testament to the strength of Sanctuary and its consistency of approach to the bond markets.”

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