Great Places Housing Group has issued an £18m bond at one of the lowest rates ever achieved by a housing association.
The deal, which had an all-in cost of just over 4%, represents a significant reduction in its cost of finance for the Manchester-based organisation.
Great Places first issued an own-named £200m bond in December 2012, with £50m retained to be drawn down at a later date. It issued £32m of the retained £50m last December. It will use the money to support its development programme.
Great Places finance director Phil Elvy said: “I am delighted with the result. A spread of 102 bps, combined with the underlying gilt of 2.982%, produced an incredibly low all-in rate of 4.002% - one of the lowest rates ever achieved by any registered provider.
“This outcome fully justifies the decision not to fully issue all of the £50m retained bond last November. The confidence shown in us by the investors and the continued strong credit ratings are the consequence of being a financially strong organisation.”
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