Housing 21, a leading not-for-profit provider of Retirement Living and Extra Care properties for older people, has announced it has sold a further £80m of its existing 3.288% 2049 secured bonds, taking the total bonds in issue to £450m.
There was exceptional support for the bond issue with demand of around £270m from a broad range of existing and new investors, ultimately enabling the bonds to be sold at an all-in yield of 2.488%. The proceeds of the issue significantly strengthen Housing 21’s balance sheet, extending its liquidity horizon and average life of debt. It will also enable the organisation to continue delivering more new homes for older people across England with confidence.
Andy Howarth, Chief Financial Officer at Housing 21 said: “We are delighted with the very positive response from investors to this fund raising, which further reduces our average cost of debt.
“The funds will play a key role in helping us deliver our strategy to provide more affordable, quality homes for older people and continue to provide an excellent service to our residents. We have recently started enhancing our engagement with the credit community and we look forward to further developing these key relationships in the years ahead.”
Lloyds Bank Corporate Markets acted as sole bookrunner. Housing 21 was also supported on the transaction by Devonshires (legal advice) and Chatham Financial (financial advice). Bookrunner’s legal advice was provided by Addleshaw Goddard LLP.
Housing 21 continues to hold £50m of the 2049 bonds, enabling fast and flexible access to further investment in the future, if required.
The organisation has a strong focus on quality and customer service, with its care services highly rated by both residents and the Care and Quality Commission (CQC).
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