We received some good news on our long-term funding position last week after going to the bond markets on the back of the positive messages in the Chancellor’s Autumn Statement.
We’ve successfully secured a 25-year bond at a rate of 5.25% with a £100m retained element. This is an interest rate which is 0.75% below the rate assumed in our financial plan, creating welcomed headroom in our 2023-24 budget.
The bond is the first housing association bond issued since April, as we took advantage of the fact investors who favour social housing have not had anywhere to put their money until now.
It was issued to us in line with our new sustainable finance framework and will help us refinance our existing debt and help us continue to fund the delivery of a range of projects including proactive investment into our existing homes and our delivery of new homes.
Our Director of Corporate Finance and Treasury James Tarrant, said: “Given the volatility leading into the transaction and lack of recent sterling issuance, the significant demand from investors in purchasing this bond aligned to our new sustainable finance framework was really positive to see.”
It is the first public bond to be secured by GreenSquareAccord. The bond was launched at an initial guide price of 235 basis points over gilts, but demand helped to drive this down to 210 basis points.
Our Chief Finance Officer Jo Makinson said: “This bond gives us long-term assurance and certainty of cost in an increasingly volatile and unpredictable market.
“We are delighted to be able to secure funding that will enable us to continue to deliver for our customers and communities.”