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Giant housing association secures £350m bond

Large housing association Sanctuary Group has secured a 30-year bond worth £350m.

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Picture: Getty
Picture: Getty
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Large housing association issues £350m 30-year bond #ukhousing

@HelloSanctuary secures 30-year bond at 2.375% #ukhousing

The association, which which manages over 100,000 homes, secured the bond at a rate of 2.375%.

The bond, which was backed by 32 investors, was oversubscribed by a factor of five times and brought in £1.5bn in orders from over 40 respected investors, the group said.

Sanctuary’s 30-year bond issue from Friday follows London housing association Optivo, which issued a £250m 15-year bond at a coupon of 2.857%.

Ed Lunt, group finance director at Sanctuary, said: “We are delighted to have secured this bond issuance which, despite the current turbulence in the markets, demonstrates the confidence investors have in the group and its long-term strategic aims.


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“The bond proceeds will support our strategic investment plans to enhance our current stock, develop new affordable homes, and deliver services in line with our social purpose of providing housing and care to those in need.”

Sanctuary is rated as A2 stable and A+ stable by credit rating agencies Moody’s and Standard & Poor’s respectively.

Sanctuary’s deal is the latest bond agreed in recent weeks despite market volatility caused by coronavirus uncertainty in the market. Smaller associations have also been coming to the market, with Nottingham-based Tuntum Housing Association agreeing an unlisted bond worth £42.5m at the start of the month.

Sanctuary Group’s supported housing arm, Sanctuary Supported Living, recently purchased 813 homes from Notting Hill Genesis.

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