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Hyde issues £400m bond at 3% interest rate
A London housing association has issued a £400m bond at an interest rate of 3%, putting it among the cheapest individual deals secured in the sector.
Hyde Group issued the 35-year bond today through its subsidiary organisation Martlet Homes.
The deal was given an A+ rating by Standard & Poor’s and was “greeted with strong demand from investors” according to a statement released by Hyde.
Elaine Bailey, chief executive of Hyde, said: “The housing crisis in London and the South East of England is a huge and long-standing problem, which will only be solved if we all play our part, and this deal demonstrates that Hyde is serious about creating more than our fair share of new homes the region needs.”
The deal marks one of only a handful of public bonds issued by housing associations in the past two years, and one of the best prices on a long-term public bond the sector has ever seen.
In November, A2 Dominion raised £250m with a 12-year unsecured bond at an interest rate of 3.56%.
L&Q raised £300m with a 10-year bond last April, in a deal with an overall coupon of 2.625%. It had previously raised £250m in a 34-year deal in October 2015 at a cost of 3.75%, while Metropolitan raised £250m at 4.125% the month before.
Barclays and Lloyds Bank were the book runners on the Hyde deal.
Inside Housing has asked Hyde to confirm the pricing compared to equivalent government borrowing, and whether the deal was secured.
