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Karbon raises £250m on the bond market
A North East-based housing association has raised £250m in bond finance to bankroll its plans to build 500 homes a year.
Karbon Homes, which was formed last year through the merger of Isos, Cestria and Derwentside, raised £150m of finance, with £100m retained for later sale.
The 30,000-home housing association had roadshowed to investors over the past week and the deal was said to be five times over-subscribed.
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It was priced at 1.53% more expensive than equivalent government borrowing (Gilts). It has an all-in cost of 3.5% and a 29-year length, maturing in November 2047.
Paul Fiddaman, chief executive of Karbon Homes, said: “Combining a sound business head with a strong social heart, this bond ensures we have the financial strength to deliver our strategy, so we can build strong foundations for more people.”
The organisation plans to develop 500 homes a year across the North East and Yorkshire and will also invest £180m in its existing stock over the next 10 years as part of its new Strong Foundations Strategy.
It has a top G1/V1 rating from the Regulator of Social Housing and an A+ rating from credit ratings agency Standard & Poor’s.
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
