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Aggregator completes third deferred deal for £20m
Social housing debt aggregator Blend, part of The Housing Finance Corporation, has completed a third deferred drawdown deal at an all-in rate of 2.24%.
Social housing debt aggregator Blend has completed a third deferred drawdown deal at an all-in rate of 2.24% #UKhousingRooftop Housing Group completed a £20m transaction on Tuesday, which will see the funds drawn down in 12 months’ time. It becomes the third housing association to complete a deferred deal, which THFC said is a sector first, with Blend following on from deals with Cobalt Housing and WHG.
The deferred deal comes after Blend priced £30m of retained bonds for Rooftop last week at a rate of 2.09% for 34 years, with a spread of 135 basis points over gilts – the government cost of borrowing.
Both sets of funds will be used to support Rooftop’s development programme, which plans to build 1,000 affordable homes across Worcestershire and Gloucestershire by 2023.
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Caroline Dykes, finance director at Rooftop, said: “The Blend process has been smooth, and today’s pricing is an excellent outcome for Rooftop. I’d like to thank the Blend team and our advisor Centrus for working with us on both transactions.”
Piers Williamson, chief executive of Blend, said “Today’s pricing rounds off a strong month for Blend. And despite considerable volatility in the markets, we’ve managed to complete three deferred drawdowns without once compromising on price.
“Even with the uncertainty of the US election, and this being the fifth pricing transaction by Blend in just a month, there remains strong investor interest in Blend’s model, and today’s rate reflects that vote of confidence.”
Blend recently had its A2 stable rating reaffirmed by credit ratings agency Moody’s alongside 39 housing associations who also had ratings reaffirmed.
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