Wednesday, 16 April 2014

Bromford raises £60m in private placement

Bromford Group has raised more than £60 million to support its development pipeline through a private placement.

The 27,000-home landlord became only the sixth social landlord to raise money through a private placement, which involves the sale of bonds rather than through a public offering typically used by housing associations.

The group raised £61 million on 25-year bonds at a fixed interest rate of 4.93 per cent. The bonds were sold to institutional investors Legal & General and Prudential subsidiary M&G, while the transaction was managed by Lloyds Bank.

Alison Cambage, director of treasury at Bromford, said that the money raised would be used to bolster existing resources to help fund the next two to three years of development. She added that Bromford would be likely to raise money through another type of financing at some point in the next 18 months to two years.

‘Bromford’s story and the market view of its credit was very well received and has given us useful exposure and new relationships for the future,’ she said.

Places for People and Metropolitan are among those landlords to have previously raised cash through private placements.

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