Platform Housing Group, the largest housing association in the Midlands, has issued a second sustainability bond from its £1bn EMTN programme.
The £250m bond has a 26-year maturity and was priced at Government gilts plus 0.83%, producing a coupon and yield of 5.342%. There was significant demand for the transaction, with initial order books just under four times over subscribed and more than 50 investors participating.
Jessica Friend, Group Corporate Finance Director at Platform Housing Group said: “The strong performance of this issue is supported by our on going engagement with the debt investor community and reflects Platform’s focus on balancing investment with maintaining financial strength. The proceeds will be used to help fund the provision of more much needed quality, affordable and sustainable housing as we continue to alleviate the housing shortage across the region.”
Proceeds will be used in accordance with Platform’s Sustainable Finance Framework to fund the development of new housing that qualifies as ‘Green Buildings’, having an EPC of A and B and ‘Affordable Housing’, homes developed for those who are unable to access the private housing markets.
Ben Colyer, Corporate Treasury Director at Platform Housing Group commented: “The transaction will complement the £275m sustainability linked revolving credit facilities arranged earlier in the year and means that just under half of Platform’s £2.2bn debt portfolio is now explicitly supporting our sustainability objectives.”
Rosemary Farrar, Chief Finance Officer at Platform Housing Group added: “We are incredibly pleased that our debt investors recognise the huge attractiveness of the social housing sector and continue to support funding the excellent projects we invest in. These investments help to make significant social and environmental improvements to the communities in which we operate, as we push ahead with our ambitious development and decarbonisation strategies.”
Lloyds Bank Corporate Markets, Barclays Bank and National Australia Bank acted as active bookrunners on the transaction. Bevan Brittan and Addleshaw Goddard provided legal counsel and Jones Lang Lasalle and Avison Young undertook security valuations.
Header image: Wall panels being installed at a Platform Housing Group development in London Road, Kirton, Lincolnshire.
Platform Housing Group recently published its annual gender and ethnicity pay gap reportm more on that story here.
