Housing association Peabody has completed a set of changes to its borrowing structure, making it simpler and easier for investors to understand and compare.

The social landlord says the changes streamline arrangements that have developed over time as the organisation has grown, and have created a clearer and more consistent structure for its public bond debt, with no change to its underlying financial position. All bonds will now be rated by all three major credit rating agencies.

Following approval from bondholders, the updated structure aligns existing bonds more closely with Peabody’s European Medium-Term Note (EMTN) programme framework. This creates a more consistent structure, helping investors compare bonds more easily and providing a clearer benchmark for future issuances.

The changes are expected to reduce costs and operational risk over time, which will help Peabody, which runs 109,000 properties across London and the home counties, manage its finances more efficiently and support ongoing investment in homes and services for residents.

Phil Day, Chief Financial Officer at Peabody, said: “These changes bring greater clarity and consistency to our borrowing. They make it easier for investors to understand our structure and compare our bonds, while also helping us operate more efficiently.

“Having a simpler structure puts us in a stronger position when we access the capital markets in future. That helps us secure funding on the best terms and supports our long-term plans to invest in homes and services for residents.”

Peabody says the changes strengthen the organisation’s financial platform, helping it to operate more efficiently and access funding in a clear and consistent way, and there is no impact on existing bondholder rights or the group’s overall financial strength, which remains stable.

Peabody was supported by Allia C&C as financial advisers and Allia C&C and Lloyds as joint solicitation agents, alongside Trowers & Hamlins as legal adviser.

Rebecca Tozer, DCM at Lloyds, said: “We are delighted to have supported the successful completion of this important portfolio consent exercise, which represents a key milestone in simplifying Peabody’s debt structure across its loans, bonds and private placements. Lloyds was pleased to build on its broader relationship with Peabody by acting as Joint Solicitation Agent alongside Allia C&C, working closely with the issuer, advisers, lawyers and investors to deliver a smooth and efficient outcome. The completion of the process reflects strong engagement from stakeholders and underlines Peabody’s proactive approach to balance sheet and capital structure management.”

Henrietta Podd, Joint head of Advisory and Funding at Allia C&C, said: “This exercise, which not only involved structural changes to Peabody’s six bond issues but also to the security arrangements affecting almost all its lenders and investors, has been a great team achievement for all involved. The simplified arrangements act as an excellent basis for Peabody’s funding programme going forward, across the banking, private placement and public markets.”

Eleanor James, partner at Trowers & Hamlins, said: “Working collaboratively with the joint solicitation agents and their lawyers, the brief was to deliver a fit-for-the future structure for Peabody’s capital markets instruments and security charging. We are pleased to have supported Peabody with this important project and trust it provides a stable platform for future debt issuance which will support vital housing delivery across London and the South East.”