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Thirteen issues £100m private placement
Housing association Thirteen has secured £100m of new capital by issuing its first private placement with a group of UK and US institutional investors.
Thirteen, the largest housing association in the North East with more than 34,000 homes, plans to use the money to deliver its development programme over the next five years.
The £100m private placement is spread over a number of tranches with 25 to 35-year maturities and average cost in interest of 2.86%.
Housing associations often vary the maturity lengths of loans to diversify their portfolios, reducing future refinancing risk so they do not have to pay all the money back at the same time.
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Ian Wardle, chief executive of Thirteen, said: “Over the next five years we’ve pledged to invest more than £1bn into improving homes for existing customers, building new homes, making improvements to neighbourhoods and delivering support services offered to customers.
“By broadening our funding base in this way, we can continue to invest in existing customers as well as building the new homes that future customers want and need.”
The social landlord was named as a strategic partner by Homes England last year, with the association securing £40m in grant under the condition it would start 1,000 additional new homes by March 2022.
Heather Ashton, executive director of resources at Thirteen, said: “We’re really pleased with the feedback we received from investors throughout the process. It was extremely positive, and their confidence in Thirteen’s management team and governance has resulted in a fantastic outcome for our first private placement.”
JCRA, part of Chatham Financial, arranged the private placement for Thirteen.
