Bromford Flagship issues first £300m sustainable bond
Bromford Flagship has issued its first £300m sustainable bond after strong investor demand.
Bromford Flagship issues first £300m sustainable bond #UKhousingThis 25-year bond was priced by the landlord at government gilts plus 0.82%, producing a coupon and yield of 6.072%.
It is the first to be issued under the social landlord’s £1.5bn Euro Medium-Term Note (EMTN) programme, alongside the housing group’s sustainable finance framework.
This will help the recently merged landlord target 2,000 homes per year in the next three decades.
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Paul Walsh, chief finance officer at the 80,000-home landlord, called the four-times oversubscribed bond an “important milestone” given the market conditions.
Bromford Flagship also agreed to an extended term loan with NatWest, which also has sustainability features.
Mr Walsh said: “These deals optimise our ongoing debt facilities while raising some new funds that support our liquidity.
“They increase the average life of our outstanding debt and demonstrate our confidence to fund the business for the long term to support our ambition to be one of the largest builders of much-needed social and affordable homes in the UK.
“This is an important milestone which will allow us to move forward with our future financing and development plans and enables us to access the additional £1.9bn capacity following the creation of Bromford Flagship earlier this year.”
Dominic Brindley, director of financing and risk solutions at NatWest, said: “NatWest is delighted to support Bromford Flagship as both arranger of their £1.5bn EMTN programme and an active bookrunner on this £300m debut drawdown.
“NatWest is committed to playing its part in helping people into safe, stable homes and this is reflected in our ambition to lend £7.5bn to the social housing sector.”
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