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Housing association sells £55m of retained bonds
Medium-sized landlord Yorkshire Housing has sold £55m of retained 2044 bonds, with the proceeds being used to fund its development programme.
The bonds were sold with a coupon of 4.125% and achieved a yield of 2.51%, which is 117 basis points over gilts.
The deal was 3.6 times oversubscribed, allowing the spread to tighten to 117 basis points compared with initial pricing guidance of 130 basis points.
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The £70m raised from investors as a result of the sale will be used to finance Yorkshire Housing’s plans to build 8,000 affordable homes by 2030.
Andy Oldale, executive director finance & governance at Yorkshire Housing, said: “We’re delighted with the outcome of our £55m retained bond sale and the support we received from NatWest and advisors Chatham in delivering this. The funds we’ve raised will play a key role in enabling us to deliver our plans to provide more affordable homes for people across Yorkshire.”
NatWest was the sole bank on the transaction.
George Flynn, vice-president of financing and risk solutions at NatWest, said: “It has been a pleasure supporting Yorkshire Housing in this highly successful transaction achieving their core financing objectives and reopening the sterling corporate bond market for 2022. This provides a very strong platform for future bond transactions and supports the continued delivery of Yorkshire Housing’s corporate strategy.”
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