Housing association raises £120m through bond tap issue | News

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Housing association raises £120m through bond tap issue

Housing 21 has 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 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.”

It is the latest in a string of housing associations issuing bonds, with Hyde Housing and Midland Heart also in the market.