Peabody issues 12-year £350m sustainability bond
Large London housing association Peabody has issued a 12-year £350m bond under a new sustainable finance framework that includes boosting electric charging points in its neighbourhoods.
It is the first bond the association has issued under the new framework with a spread of 125 basis points (bps) over gilts.
Thirty-seven investors took part in the issuance, leading to a tightening on the margin of around 140bps.
The 67,000-home landlord confirmed the all-in cost of funds is 2.75% and that the sustainability bond has a coupon of 2.75% per annum.
Peabody said its sustainable finance framework’s objectives are closely linked to the Sustainable Reporting Standard for Social Housing (SRS).
The objectives include renovating and retrofitting existing homes to improve the energy performance certificate ratings and energy efficiency, as well as projects to protect as many people as possible from fuel poverty and high heating bills.
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Peabody’s aim is for all of its vehicles to be electric by 2030 and it will boost access to electric charging points in its neighbourhoods for both residents and employees.
The landlord will continue “to build genuinely affordable homes for people in need”, improve green spaces and deliver programmes aimed at children and young people, and provide support designed to prevent or alleviate unemployment and low pay among its residents.
Anthony Marriott, director of treasury and corporate finance at Peabody, said: “This is a positive result at an exceptionally uncertain time in the market.
“We welcome the strong interest from a wide range of investors and the transaction will enable us to deliver on a range of objectives as set out in our sustainable finance framework.”
Last week, the chief executive of Peabody promised to launch a fully transparent investigation into “what went wrong” after the body of a 61-year-old resident was left undiscovered for two years.
Ian McDermott said he was devastated to hear what had happened to resident Sheila Seleoane, who was found in her housing association flat at Lords Court in Peckham, south London.
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