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Home Group one of 13 housing providers chosen for 'lowest-ever rate' bond deal

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Home Group one of 13 housing providers chosen for 'lowest-ever rate' bond deal

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Published by Jon Land for 24dash.com in Housing

Home Group one of 13 housing providers chosen for 'lowest-ever rate' bond deal Home Group one of 13 housing providers chosen for 'lowest-ever rate' bond deal

Home Group is one of 13 housing providers to be included in a major deal which will open the door to low interest funding.

The group has been selected by The Housing Finance Corporation (THFC) to be one of just 13 providers that will be able to access funds from an ‘AAA’ rated £208 million bond.

Home Group is the only national housing provider to be included. It is also the only North East based provider and the only Scottish based provider through its Home Scotland division.

The deal will see Home Group and Home Scotland access funding of £30.7m at rates which are believed to the lowest ever achieved in the sector’s 26 year history of accessing private finance.

The smallest provider involved in the deal is 1,200-home Mount Green, based in Surrey, which borrowed £6 million.

Housing Minister Kris Hopkins, said: “This government’s long term economic plan is working and as a result we’re able to offer up to £3.5 billion in government-backed guarantees to get Britain building and deliver thousands of affordable homes across the country.

“Today’s bond pricing represents real progress, offering real benefits to affordable housing providers by enabling them to get access to finance on much more favourable terms.”

Piers Williamson, chief executive of THFC, said: "At a time when HA credit spreads have been drifting higher, this represents a real breakthrough."

Jenny Makin, Home Group chief financial officer, said: “We’re delighted to have been included in this bond deal. The transaction was oversubscribed threefold and being selected shows the confidence that THFC has in Home Group and Home Scotland’s long term financial security.

“We’ll use these funds to supplement our development programme which is already one of the largest in the sector. It will allow us to provide great value for money for our customers and we’ll use the funds to build modern energy efficient homes for those who need them.”

The bond has a life expectancy of 28 years and an interest rate of 3.76%.

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