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Social landlord raises £250m via public bond

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Social landlord raises £250m via public bond

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

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Image: Money Arrow via Shutterstock

A social landlord has priced a new public bond, raising £250 million over the next 40 years at a margin of 98 basis points (bps) above the gilt.

Notting Hill Housing Trust’s secured bonds are due to mature on 20 February 2054 with an all-in yield of 4.472%. The joint book runners to the issue are Barclays, Lloyds and Santander.

Paul Phillips, Notting Hill's group finance director, said: "We are delighted at the strong support that we have received from Sterling bond investors that has allowed us to position our third benchmark deal in the market and take advantage of the low yields that are currently available. Today's issue is a strong show of confidence not only in the future of our business but also the social housing sector as a whole.”

The proceeds of the issue will be used both to refinance existing debt facilities and also to finance the issuer's development programme, which includes approximately 1,400 new homes a year until 2020 for social housing, shared ownership, market rent and market sale across London.

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