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Home Group secures additional £100m bond issue

Home Group has issued a new £100m bond at the lowest rate in the organisation’s history.

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Home Group secures additional £100m bond issue #ukhousing

The association, which owns 55,000 homes across England and Scotland, successfully issued the 23-year £100m bond at a rate of 2.311%.

The retained bonds form part of a £350m bond issue the association secured last year. This 24-year secured bond was priced at an effective fixed rate of 3.24% and was arranged with an option to draw down a further £100m at a future point.

The £100m was secured via a different route to usual methods due social distancing guidelines; all presentations and communications were carried out remotely using secure digital platforms.

Home Group said the new bond would help support its long-term financing strategy and its aim to build homes for social and affordable rent, together with supported housing.


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It received high levels of investor engagement, resulting in an oversubscription of nearly four times. This included interest from existing investors as well as new ones.

It is the latest association to secure money in the bonds market, despite the volatility being caused by the impact of COVID-19 on private investment.

Last week, Sovereign Housing Association and Together Housing secured bonds worth a combined total of £225m.

Sovereign’s secured a £125m bond retained from a previous issue worth £375m with a coupon of 2.375% for 29 years, while Together Housing issued a £100m tap of its existing £250m bond at an overall yield of 2.113%.

The Guinness Partnership has issued a £400m, 35-year bond at a coupon of 2% following a single day of marketing in mid-April. At the start of April, Sanctuary Group secured a 30-year bond worth £350m at a rate of 2.375%.

Home Group was supported in the process by Mitsubishi UFJ Financial Group and NatWest Markets as bookrunners, Centrus as treasury advisors and Devonshires as legal advisors.

John Hudson, chief financial officer at Home Group, said: “This is a really great deal and we are delighted. Not only does this reaffirm Home Group’s strength as an organisation but it’s very good to know that investors see us as a safe and secure investment at times of wider uncertainty.

“Our treasury team had been carefully monitoring market conditions with our advisors and had identified a window of opportunity in the marketplace. Because of the high level of demand, we were able to apply some pressure in terms of pricing and achieve the excellent rate we did.”

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