Thursday, 23 October 2014

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.

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up

More Newsletters

Related

Articles

IH Subscription

- IMPORTANT ANNOUNCEMENT -

 

You will soon need to sign into www.insidehousing.co.uk using your email address rather than your username.

If you are unsure which email address is linked to your account, please Click Here. Your password will remain the same.

If you have a print subscription we need to ensure that we have the correct details in order to link your subscription to your online account, for more information Click Here.

Click Here to close window or press the Esc key.