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Housing association issues £145m bond

Northern housing association Great Places has issued a £145m bond tap.

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Great Places has added £145m to its existing £200m bond issuance #ukhousing

A Northern housing association has achieved the same price of borrowing as Optivo #ukhousing

Great Places will draw down £75m now, saving £70m for a later date #ukhousing

The 19,000-home association added the tap onto its existing £200m bond issuance, bringing the total value of that bond up to £345m.

Initially, it has sold only £75m of the bond to six investors on a 25-year maturity, retaining the rest of the money for a later date. It achieved an interest rate 1.4% more expensive than the cost of government borrowing, at a total rate of 3.34%

Great Places plans to use the money to support its ongoing development programme.


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Housing association issues £250m bondHousing association issues £250m bond

The original bond was issued in December 2012, with the association drawing down from it at various points after that. It drew down the final £18m chunk in October 2014, achieving an interest rate just 1.02% more expensive than government borrowing.

Link Asset Services advised Great Places on the issue. David Whelan, managing director at Link Asset Services, said: “We would like to congratulate all involved at Great Places Housing Group on this excellent result.”

In January, experts predicted a busy start to the year for housing associations in the bond market.

Last month, London’s largest housing association, L&Q, completed its second £500m bond in just seven months, pricing it at 1.18% and 1.35% more expensive than government borrowing, for the short and long-term loans respectively.

More recently, Croydon-based Optivo issued a £250m bond, with the same spread as Great Places, at 1.4% more expensive than government borrowing.

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