Public bond issue secures housing group £200m for new affordable homes
Published by Max Salsbury for 24dash.com in Housing and also in Development, Finance
A Leicestershire-based housing group has secured £200 million in the capital markets through a public bond issue.
emh group managed the acquisition on the strength of an AA- rating from credit agency Standard and Poor's.
The group says the cash injection will see it build 300 new affordable homes a year across the East Midlands.
Pursuing the funds was a key aspect of the group’s 'Fit for the Future' programme, which started 18 months ago with a governance review and concluded recently with the amalgamation of the four housing associations within the group into one: East Midlands Housing Association, Foundation Housing Association, Three Oaks Homes, and Three Valleys Housing.
The new single landlord, emh homes, owns and manages around 18,000 homes.
The group has also expanded its care and support services with the acquisition of specialist provider Enable Care and Support in April 2013.
Chan Kataria, emh group chief executive, said: “The aim of the organisational reviews was to make the business much more streamlined and efficient. We are delighted that our reinvention has enabled us to raise a £200m bond issue supported by a solid credit rating. I believe that this provides strong validation of our track record, and that we are now well positioned to meet our long-term business aspirations of developing much-needed new affordable homes and investing in our communities.”
Pictured: Chief Executive Chan Kataria (centre) with local MP Sir Edward Garnier (right) and members of the Knight family at the recent opening of a new emh group development in Husbands Bosworth.