G15 member secures £200m private placement
Network Homes has finalised the terms of a £200m private placement with a number of existing institutional investors.
Barings, MetLife Investment Management and Nuveen are among the investors signed up to the deal, which was issued under Network’s newly launched sustainable finance framework.
The 20,000-home housing association upsized the private placement from £150m to £200m due to strong demand across the tenor curve, with the order book from existing investors exceeding £300m.
The placement is fully secured with maturity terms ranging from 15 to 30 years, with a delayed draw of three months.
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In line with Network’s sustainable finance framework, proceeds will be applied against eligible sustainable projects over the life of the notes.
Network said the funding will help it achieve its strategic sustainability targets and provide more affordable housing to those in need.
It follows two other private placements issued by Network Homes in January 2019 and July 2020, worth £175m and £150m respectively.
Anup Dholakia, director of corporate finance at Network Homes, said: “We’re really pleased to have accessed the capital markets through existing and valued investors, having cultivated deep relationships since our earlier transactions – with regular and expansive dialogue outside of funding rounds.
“This provided Network Homes with the enhanced agility to navigate capricious market conditions to secure an exceptional result and our first sustainable private placement issuance. In line with our social purpose, we’re proud this new funding will be invested into helping both current and future generations enjoy sustainable and affordable homes.”
Network Homes was responsible for all direct investor dialogue and building the order book.
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