Manchester-based Great Places Housing Group has become the first exclusively northern-based housing association to issue a bond.
The bond raised £200m of which £150m is drawn down immediately and the remaining £50m within the next two years.
The hugely successful issue will pay investors a return of 4.81% which is the third most competitive arrangement for a housing association out of around 20 bonds issued recently.
Great Places manages more than 16,000 homes and the money raised will be used to fund its award winning development programme.
Chief executive Stephen Porter, deputy chief executive Matthew Harrison and finance director Phil Elvy met more than 20 sets of investors during an intensive three-day roadshow presentation which took place in Manchester, Edinburgh and London.
This led to the issue being massively oversubscribed which helped tighten the credit spread achieved to 170 basis points.
Chief executive Stephen Porter said: “This is fantastic news and demonstrates the financial strength of our business and our excellent reputation. It will allow us to continue to build much needed homes and I am delighted by the response of investors.”
The deal was jointly arranged by RBC Capital Markets, The Royal Bank of Scotland and Santander GBM.
Earlier this year Great Places received £40m from the Homes and Communities Agency towards building 1,750 new homes.
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