Sanctuary issues £350m sustainability bond

Sanctuary said that demand exceeded £1.3bn with interest from a diverse investor base, resulting in a final gilt spread of 85 basis points and coupon of 5.625%.

The bond achieved the landlord’s lowest-ever credit spread on a primary benchmark bond issue, and is rated A2 by Moody’s and A by S&P. 

Sanctuary said net proceeds will be allocated in accordance with its sustainable finance framework, which was published last year.

Ed Lunt, chief financial officer at Sanctuary, said: “Securing this bond issuance demonstrates the confidence investors have in the organisation, particularly given the external macroeconomic conditions impacting the capital markets.

“The proceeds will support us to grow our business and deliver our strategic objectives in line with our values. This includes further investment in our current homes and the development of much-needed new affordable housing.”

In its recent unaudited trading update for 2025-26, the housing association reported an increase in operating surplus, while its completions and starts fell.

At the end of last year, Platform Housing Group secured a £250m sustainability bond, marking the third issuance under its £2bn EMTN programme.