Housing 21 raises £120m through a bond tap issue

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Posted 13 August 2020

Housing 21 raises £120m through a bond tap issue

On 7 August 2020, Housing 21 priced a £120m tap of their 2017 bond issue. A spread of 153 bps represented a negligible new issue concession with an all-in cost achieved of 2.187%. The issue was extremely well received by the market with an order book in excess of £320m. The funds will support Housing 21’s ambitious development plans to build 800 units per year by March 2022.

Paul Weston, Chief Financial Officer, commented: “The funds raised allow Housing 21 to lock in low rates of interest to fund our future development plans. The transaction was highly security efficient with funds received totalling c£147m. Participation from both existing and new investors was very encouraging and demonstrates the support for the important work that Housing 21 are doing to provide more homes for older people of modest means during these challenging times.”

Housing 21 were supported in the transaction by NatWest Capital Markets who acted as bookrunner and Chatham Financial who provided treasury advice. Legal advice was provided by Devonshires for Housing 21 and Addleshaw Goddard who acted for NatWest. Valuations were provided by Jones Lang LaSalle.

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