ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Peabody raises £450m on bond markets

London-based housing association Peabody has raised £450m through a bond issue. 

Linked InTwitterFacebookeCard
Sharelines

Peabody raises £450m on bond markets #ukhousing

The 55,000-home landlord, which completed a merger with Family Mosaic last year, revealed in a filing to the stock market that the 30-year bonds will be issued tomorrow through its subsidiary Peabody Capital No.2 at a coupon of 3.25%.

It had initially planned to raise £350m, but has added £100m of retained finance to the issue to be drawn down at a later date.

 


READ MORE

Peabody picks Lendlease for £8bn Thamesmead regenerationPeabody picks Lendlease for £8bn Thamesmead regeneration
Peabody staff call off strike after deal agreedPeabody staff call off strike after deal agreed
Peabody to acquire South East-based housing associationPeabody to acquire South East-based housing association

The bond priced at an interest rate 1.55% more expensive than equivalent government borrowing (gilts) – a marginally wider price than some recent housing association deals.

Peabody held meetings in London and Edinburgh earlier this month, arranged by joint bookrunners on the deal Barclays, HSBC and Santander.

 

A judgement from Moody’s this month gave the deal an A3 rating with a stable outlook, the same rating for Peabody as an organisation.

The rating, the agency said, reflected the housing association’s “relatively low level of indebtedness and high level of unencumbered assets”.

Peabody last month revealed a slight drop in annual surplus to £175m, which it partly blamed on its merger with Mosaic. Revenue for the group rose 9% to £609m.

The landlord owns 55,700 homes across London, the East and the South East, and invested £250m in new homes and £68m in existing ones over the year.

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.