Tuesday, 30 September 2014

Landlord achieves record rate for £250m bond

Affinity Sutton has raised £250 million in the cheapest ever bond issued by a housing association.

The 57,000-home association will pay investors a return of 4.25 per cent for the 30-year secured issue. This represents a cheaper deal than the 4.62 per cent achieved by London & Quadrant for its own £250 million issue in March. The spread over gilts, the price above the cost of government bonds, was 1.25 per cent.

The funds will be used to part-finance Affinity Sutton’s 3,098-home affordable homes programme, along with £65 million of grant.

The association plans to build 2,117 homes for affordable rent, 981 for shared ownership and 83 supported housing units.

Mark Washer, group finance director at Affinity Sutton said: ‘This is a fantastic result for Affinity Sutton.

‘Our strong surpluses and reserves are essential elements of our strong financial profile and clearly demonstrate that we are attractive to investors.

‘With government grant funding for new affordable homes down to an average of just 12 per cent, strong surpluses and increased levels of the capital debt markets are essential to securing our financial future.’

The deal was jointly arranged by RBC Capital Markets, Barclays and Lloyds.

Newsletter Sign-up

More Newsletters

Related

Articles

Resources

  • Fighting back

    01//11/2013

    As the private rented sector continues to grow, so does the number of problematic landlords. Michael Pooler finds out how tenants are taking matters into their own hands to fight for better conditions

  • Staying power

    04/10/2013

    By providing a range of services from discounted furniture to advice on everything from welfare to energy, one social enterprise is enabling tenants to avoid debt and stay in their home for longer. Louise Hunt reports.

  • The prefab way

    28/02/2014

    Hammersmith & Fulham Council is erecting pre-fabricated homes and Brighton has turned to shipping containers, Lydia Stockdale reports

  • Housing lessons to learn

    07/02/2014

    With a week left to enter the Into Africa competition, Erick Kabendera reports from Dar es Salaam on the rise of affordable housing

  • Acting out to tackle domestic abuse

    28/03/2014

    An interactive training course is helping housing professionals in the south west identify and tackle domestic abuse. Lydia Stockdale finds out how

IH Subscription