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Stonewater issues fully retained £250m bond

Stonewater has issued £250m worth of bonds, completing a transaction intended to store up potential funds for the future.

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Stonewater issues fully retained £250m bond #ukhousing

The 31,500-home association, as Inside Housing reported last week, has no plans to raise money from the issue immediately, but will retain all of the £250m to be drawn down later.

The issue, which will mature in 2045, has no price initially as it was fully retained. Investors will be sought to provide funds when Stonewater chooses to draw them down. The association set the coupon at 3.38%, in line with recent issues, but will have to price any subsequent drawdown later on.


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Similarly, there is no security in place for the issue, as this will be added when Stonewater draws down funds.

John Bruton, executive director of finance at Stonewater, said: “We are looking at ways to increase our affordable housebuilding programme and retaining these bonds as a reserve that we can draw on when we need to raise money for future housing developments.

“These bonds represent another source of funding for Stonewater, alongside a loan which we hope to conclude in due course with the European Investment Bank.”

Stonewater originally intended to issue this bond earlier in the year, but in the end secured a $150m loan facility from Pricoa instead. Nevertheless, with the work already done preparing for the bond, the association decided to press ahead with the issue but not take on any capital immediately.

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