Sunday, 26 June 2016

Peabody issues £200m bond

Peabody has raised £200 million on the UK bond market.

The London association, which owns or manages more than 19,000 homes, achieved a cost of funds of 5.32 per cent. The spread over gilt, the cost of funds minus the price of government bonds, was 1 per cent, equalling Sanctuary’s £200 million issue last year as the best priced own name issue by a housing association in recent years.

Stephen Howlett, chief executive of Peabody, said: ‘The reception from investors was universally positive. We are delighted to secure this funding for Peabody’s growth. It will enable us to provide homes and services to more people in London into the future.’

The issue was more expensive, however, than January’s club deal by the Housing Finance Corporation, which came in at 99 basis points above gilt. Proceeds from the Peabody issue will be used to fund development.

The bond was arranged by consultancy Traderisks, with Barclays Capital and Santander acting as joint book-runners. Peabody last month secured an AA2 rating from Moody’s, the third best rating available.

Readers' comments

Comments are only open to subscribers of Inside Housing

Already a subscriber?

If you’re already a subscriber to Inside Housing, your subscription may not be linked to your online account. You can link your subscription from within the My Account section of the website and clicking on Link My Account.

Not yet a subscriber?

If you don't yet subscribe to Inside Housing, please visit our subscription page to view our various subscription packages.

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up

Related

Articles

  • Peabody submits Thamesmead application

    16 May 2016

    Peabody has submitted plans for the first phase of its multibillion pound regeneration of Thamesmead in south-east London.

  • Peabody to seek partner for £1.5bn project

    16 March 2016

    Peabody will seek a commercial joint venture partner and a strategic investor to help bankroll its £1.5bn regeneration of one of London’s most iconic estates.

  • AHF issues £194m guaranteed bond

    9 March 2016

    A government-guaranteed bond has raised £194m for seven housing associations at one of the lowest interest rates ever seen in the sector.

  • Peabody records £50m underlying surplus

    1 September 2015

    Peabody increased its core surplus to £50m and invested more than £350m in new and existing stock last financial year, according to its latest accounts.

  • Warrington Council issues £150m bond

    25 August 2015

    A council has issued a £150m bond after pledging to use capital market cash to finance the building of new homes locally.

IH Subscription