SNG secures £250m in sustainable bonds after strong investor demand

The bond attracted a very strong orderbook that was nearly four times over-subscribed at its peak. The 15-year tenor was well received by markets and priced at 95 basis points over gilts, with an all-in rate of 6.203%.

The 85,000-home association also revealed that the deal benefited from strong investor engagement with a peak orderbook of over £900m and more than 40 investors in total.

Peter Benz, chief finance officer at SNG, said: “We’re very pleased with the successful completion of our £250m drawdown, the first under SNG’s EMTN programme. 

“The transaction reflects strong investor appetite for our credit and purpose, and was executed seamlessly thanks to excellent collaboration with our banking syndicate and advisors.

“The proceeds will support our objective to deliver an aspirational programme of new affordable homes, aligned with our sustainable finance framework and long-term funding strategy.”

The issuance came after several sector experts spoke to Inside Housing this week about why uncertainty over government policy is spooking financial markets and leaving the sector to find ways to ride out another spike in borrowing costs.