L&Q raises £300m through bond issue
London & Quadrant has raised £300 million in private finance to fund its future development programme with the largest ever bond issued by a housing association.
The issue was three-and-a-half times over-subscribed, with £1.06 billion worth of subscriptions registered to the bond within one hour of it hitting the markets on Tuesday.
The issue is a fixed-rate bond launched with Barclays Capital, Goldman Sachs and the Royal Bank of Scotland all acting as joint bookrunners.
It is priced at 1.15 per cent above gilt (the value of a bond issued by the government).
The money will be used to support the 63,000-home housing association’s development plans for 10,000 homes over the next five years.
The previous biggest bond issue by a housing association was Circle Anglia’s £275 million issue in November 2008. It follows news that Genesis Housing Group issued a £250 million bond this month.
Martin Watts, head of treasury at L&Q, said it had been keen to diversify its funding sources.
‘Our ability to demonstrate our underlying operating and financial strength allowed us to move on with this deal and the massive interest in it highlights this.’
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Readers' comments (28)
kass | 20/01/2010 3:42 pm
But it takes a month for L&Q not to fix the only toilet not flushing in my flat.
Is it a sign that L&Q has been focussing more on raising finance than providing services to its residents?
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Melvin Bone | 20/01/2010 4:25 pm
Tenants really do have it easy.
If my toilet does not flush I have to fix it myself!
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short sighted | 20/01/2010 4:29 pm
They ahve eben focussing on securing the best rate possible for their lending, to decrease their borrowing costs so that they do not pay as much itnerest and are more efficient at delivering services with their residents rent payments. Surely you cant critisise that? Would you rather they pay percentages more in interest rates? You also seem to be confusing hosuing service staff with back office functions, who also make sure your rent payments are credited to your account, the contractors are paid on time and the staff are paid for coming out to your requests.
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The ONLY One | 20/01/2010 5:54 pm
Kass - they need the extra £300m to pay for the staffs HUGE bonuses as the end of the financial year looms soon!!!
And if they won't fix 'the only toilet not flushing in my flat' I would advise you to use the one that does flush, not the one that doesn't, or is your grammer getting worse????
And as Melvin says, get out of your armchair, go to B&Q and mend it yourself!!!! Just can't get the servants these days.............
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kass | 20/01/2010 11:10 pm
short sighted | Wed, 20 Jan 2010 16:29 GMT
And while doing all you say so efficiently why are L&Q inefficient when it comes to fixing my toilet then?...
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kass | 20/01/2010 11:14 pm
The ONLY One | Wed, 20 Jan 2010 17:54 GMT
My "grammer getting worse????"... Well I am not great with my grammar, but I am much better at spelling.
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Bored of Kass | 21/01/2010 12:21 pm
kass | Wed, 20 Jan 2010 15:42 GMT
"But it takes a month for L&Q not to fix the only toilet not flushing in my flat."
If you feel hard done by, this is my (and most other people's) situation:
I pay full market rent, full council tax, work full time and receive no benifits at all.
If my toilet breaks i either fix it myself or pay someone to fix it.
Part of the taxes i pay, eventually pays for the repairs to your property.
Does this seem fair?
I suggest you take responsibility for your own toilet and get it fixed, or leave L&Q housing and take responsibility for all your repairs.
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Alan | 23/01/2010 8:41 am
Bored of Kass - You got it spot on and I'm sure this is a view shared by many.
It really is time for tenants to take some responsibility instead of constantly moaning and expecting everything to be done for them!
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kass | 24/01/2010 6:48 pm
"Alan | Sat, 23 Jan 2010 08:41 GMT
Bored of Kass - You got it spot on and I'm sure this is a view shared by many.
It really is time for tenants to take some responsibility instead of constantly moaning and expecting everything to be done for them!"
What exactly do you mean by tenants expecting everything to be done for them? Could you clarify what do you mean when you say 'everything'?... Have you fully understood that I was not asking London and Quadrant to come and clean my toilet on a daily basis, I was asking for it to be fixed?
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kass | 24/01/2010 6:57 pm
Bored of Kass | Thu, 21 Jan 2010 12:21 GMT
And what would be your connection with social housing apart from you ranting that you pay taxes for it? Are you a tenant? A landlord? A housing professional perhaps? I mean in what capacity are you talking here?
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