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Housing association BPHA has secured £125m by issuing its first private placement with UK, US and Canadian investors.
According to the 19,000-home landlord, the deal is part of a strategy to diversify its debt portfolio with unsecured debt and provides liquidity to fund BPHA’s development ambitions over the next few years.
The deal was mostly on an unsecured basis (more than 90% unsecured) with a range of maturities between 10 and 20 years and an all-in weighted average rate of under 2.5%.
Six investors participated in the deal, some of which were investing in the sector for the first time.
BPHA plans to build 3,000 new homes by 2023 and will use the money to support this.
Julian Pearce, chief financial officer at BPHA, said: “We are delighted to broaden our funding base with new investors and really pleased with the extremely positive feedback we received from investors throughout the process.
“Their confidence in BPHA and its management team has resulted in a fantastic outcome for our debut private placement.”