Housing association secures sector's first long-dated sustainability bond | Housing Finance Network news

Housing association secures sector's first long-dated sustainability bond

Beyond Housing has become the first social housing provider to successfully issue a long-dated sustainability bond (30 years).

The 15,000-home landlord, which operates in Tees Valley and North Yorkshire, attracted orders from more than 30 institutions, resulting in it being four times oversubscribed.

The 30-year bond comprises £165m of immediate draw-down and £85m retained at an all-in cost of 2.216%.

In line with Beyond Housing’s Sustainable Bond Framework, the bond will be invested in the long-term strategic approach of the company in delivering positive environmental and social change for its customers and partners.

Rosemary Du Rose, Chief Executive of Beyond Housing, said: “At Beyond Housing we are committed to sustainability, and genuinely care about the work we do in supporting customers and communities and having a positive impact on their lives.

"This bond will enable us to invest in existing homes, making them more energy efficient and helping us move to become a carbon zero organisation. In addition, it will help us deliver our ambitious development programme, providing value for money and securing the company’s long-term plans.

“Securing the first long-dated sustainability bond in the social housing sector is a landmark achievement for Beyond Housing and a testament to the work of our team in delivering exceptional financial and sustainability credentials.”

Kirsty Garrett, Director of the debt capital markets team at Lloyds Bank, said: “The Lloyds Bank team successfully worked with Beyond Housing to issue its inaugural £250m sustainability bond.

“Beyond Housing has stretching sustainability targets embedded within its development programme and the establishment of its sustainable bond framework enables the association to align its long-term funding plans with its corporate strategy.

"This was welcomed by investors, who were attracted by Beyond Housing’s clear ESG strategy, consistently strong financial performance and experienced management team.

"The transaction generated a robust orderbook, which enabled Beyond Housing to price a successful debut issuance and position itself positively for a future sale of its retained bonds.”

George Flynn, Debt and Financing Solutions at NatWest said: “The NatWest team is delighted to have supported Beyond Housing on the issuance of its inaugural sustainability bond, marking the first long-dated (>20 years) sustainability bond in the social housing sector.

“Beyond Housing has a very strong ESG story, with targets to reduce its environmental impact and a clear social impact focus around regeneration, tackling homelessness and providing affordable housing.

"The management team captured investors’ attention and showcased the organisation’s sustainability credentials through the marketing phase, which resulted in strong oversubscription during execution. This positions Beyond Housing very well for future capital markets activity and will support the construction of high quality affordable housing in the North East of England.”