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.
Phil Elvy, finance director
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.
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.”
Great Places had a record turnover of just over £85m in the last financial year and made a surplus of £9.3m.
Howard Webb, a director at Capita, which advised on the bond, said: “Great Places has been very good at picking the times when the market was good and demand from investors was strong.”
Santander, the Royal Bank of Scotland and the Royal Bank of Canada were book runners on the issue.