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Newly merged housing association issues £100m bond
Metropolitan Thames Valley has announced it has issued a £100m bond following a three-day roadshow across London and Edinburgh.
The 57,000-home association borrowed £100m through its issuing arm, Metropolitan Funding, with a ‘spread’ of 1.75% – that is, 1.75 percentage points more expensive than the cost of equivalent government borrowing
Bookrunner Lloyds Bank said the bond had an overall interest rate of 3.565% and has been borrowed over 29 years.
The bond is cheaper than the £200m of bonds issued by Futures Housing Group last month, which had an interest rate of 3.375%. However, the spread on those was narrower at 1.68%.
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Metropolitan Thames Valley, which is a member of the G15 group of large London housing associations, outperformed the new bond aggregator, MORhomes, which issued £250m of bonds last month at a spread of 1.9% and an overall interest rate of 3.476%.
Lloyds said Metropolitan Thames Valley’s bond was issued after a three-day roadshow across London and Edinburgh that involved engaging with more than 30 investors. The bank said the offer was comfortably oversubscribed.
It also revealed that 96% of the investors are based in the UK, 55% agreed to invest after a one-to-one meeting, 36% agreed over lunch and 9% agreed without any meeting.
Metropolitan Thames Valley was formed last October through the merger of housing associations Metropolitan and Thames Valley.
The merged organisation plans to deliver 2,000 homes a year, which would be an increase of 66% from the 1,202 total of the two associations’ housebuilding in 2017/18, according to Inside Housing’s Biggest Builders survey.
Housing association financial statements 2017/18
Click on the links below to read more reports about individual associations' financial statements:
A2 Dominion reports £92.5m surplus
Aster sees 12% jump in surplus despite margin drop
BPHA sees surplus jump after shared ownership sales boost
Clarion's surplus falls for second year running
Housing & Care 21 records increased surplus
Metropolitan sees surplus fall due to post-Grenfell costs
Midland Heart records £47.8m surplus
Network Homes surplus dips for the second consecutive year
Notting Hill and Genesis post reduced combined surplus
Optivo sees turnover fall in first results since merger
Orbit surplus boosted by jump in value of private rented units
Paradigm surplus drops after £5.6m loan breakage cost
Places for People boosts surplus to £130m
Southern sees dip in surplus due to pensions and safety costs
Sovereign boosts surplus thanks to open market sales
Stonewater increases surplus by 38%
Swan surplus slides after £3.2m cladding provision
Vivid posts increased surplus post-Merger
