HA issues £125 million bond
Published by Max Salsbury for 24dash.com in Housing and also in Finance
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A housing association has raised £70 million to develop and acquire new homes.
Thrive Homes’ bond was issued for a nominal amount of £125m, of which £70m has been sold to investors.
The remaining £55m can be issued any time in the future, which Thrive says will provide it with the flexibility to raise additional finance for new housing in its Hertfordshire base and the surrounding areas.
The bonds repay in four equal instalments and have a final maturity of 2051. They were issued at par and carry a fixed interest rate of 4.68% per annum.
The bonds have been assigned a AA-/Stable rating by S&P and are listed on the London Stock Exchange.
Philip Day, Thrive's resources director, said: “This is an excellent result for Thrive, it provides a well-priced platform for us as a relatively young LSVT to begin to develop new affordable homes over the next five years. The price and rating are testament to the fact that Thrive has a strong financial profile and limited exposure to higher risk market based activities.”
Thrive owns and manages over 4,300 homes in five local authority areas across Hertfordshire.