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Government-backed loans scheme Affordable Housing Finance (AHF) has sold its last remaining outstanding retained bonds.
Five housing associations borrowed £49.5m worth of retained bonds in two transactions. The first involved four borrowers taking £39.5m, priced at 0.29% above the cost of government borrowing, with an all-in rate of 2.15%.
Swaythling and Drum, both members of the Radian Group, borrowed £21m and £5.5m respectively, while West Kent Housing Association borrowed £6m and Golding £7m.
The second transaction involved Yorkshire Housing borrowing £10m at a slightly cheaper all-in rate of 2.124%.
Piers Williamson, chief executive of AHF, said: “These latest retained bond pricings show how successful AHF has been in generating investor interest, despite the government-backed programme coming to the end of its underwriting period.
“AHF is pleased that all participating housing associations will be able to utilise its competitive financing, which will help them deliver much-needed affordable homes.”
These bonds represent the last of AHF’s retained bonds, but the scheme still has some funds left in its European Investment Bank facility, which has been a source of cheap borrowing for a number of housing associations.
Once that facility is finished, AHF’s programme will end, but the sector is also waiting for more concrete news on the £8bn of borrowing guarantees announced in the Autumn Budget. Inside Housing revealed at the time that the Treasury is considering using the funds for affordable housing.