Sovereign Housing Association has raised 拢375m (鈧�436m) via a bond issue to help build new homes.
The UK housing association said the bond 鈥� which was well-oversubscribed at 拢1.2bn 鈥� will support its investment in the quality of its homes and services, as well as building nearly 2,000 new homes a year through a more land-led approach.
The 29-year 拢375m bond includes a 拢125m retained element to issue at a later date, Sovereign Housing said.
Sovereign Housing, which has around 58,000 homes across the south of England, said by retaining 拢125m of the bond, it will have fast and flexible access to further investment in the future should it be required.
Tracey Barnes, Sovereign Housing Association鈥檚 CFO, said: 鈥淭his is an excellent result and will allow Sovereign to continue to do more for people and places, delivering our ambitious plans and maximising our social impact.
鈥淭he strong book build and overwhelming appetite from investors really confirms Sovereign Housing鈥檚 standing and financial strength, particularly given these turbulent economic and political times.鈥�
The latest bond is Sovereign Housing鈥檚 third UK public bond issue, following subsequent issues in 2012 and 2009.
Dominic Brindley, head of public sector at NatWest markets, said: 鈥淭he size and depth of the order-book and the overall outcome is a great reflection of Sovereign鈥檚 sector-leading credentials which bodes well for future issuances.
鈥漈his approach to financing is testament to the support that the bank offers issuers in navigating both the bank and capital markets.鈥�
Kirsty Garrett, associate director, debt capital markets, Lloyds Bank, said: 鈥淭he Lloyds Bank team was delighted to work with Sovereign on its first transaction in over seven years.鈥�
Garrett said investors were attracted to Sovereign鈥檚 scale, A2 / A+ credit rating and regional presence.
