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Large association secures £100m private placement

Bromford has agreed a £100m private placement with three investors to fund its housebuilding and sustainability programme.

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A recent development by the landlord (picture: Bromford)
A recent development by the landlord (picture: Bromford)
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Bromford has agreed a £100m private placement with three investors to fund its housebuilding and sustainability programme #UKhousing

The 46,000-home housing association launched the transaction to the market earlier this month with a bid book that was seven times oversubscribed.

The landlord said it received bids from both new and existing investors based in the UK and North America. 

Eleven investors, including five potential first-time investors in Bromford, submitted bids in excess of £700m across the requested tenor curve, from 10 to 30 years.

This placement follows a £75m revolving credit facility (RCF) Bromford secured in June, with an interest rate partly linked to cutting staff sickness levels.


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The new multimillion-pound placement will help fund the Gloucestershire-based landlord’s development programme, which aims to complete 12,000 new homes over the next eight years.

Imran Mubeen, director of treasury at Bromford, said: “These funds will enable us to continue to invest in the delivery of much-needed new affordable housing across the West Midlands and West of England. 

“They will also fund our broad and ambitious sustainability programme, which includes decarbonising more of our existing homes, improving diversity across our organisation, and coaching more of our customers into employment and training.

“With a bid book over seven times oversubscribed, and with offers across every point of the tenor curve at attractive spreads, this deal affirms that the capital markets absolutely remain open for housing associations who have a robust business plan and a compelling sustainability narrative. 

“The positioning of our leading credit ratings and, importantly, how we continue to drive our ratings to unlock balance sheet capacity to deliver new homes, carbon retrofit works and our flagship neighbourhood coaching model, resonated with the investor community.

“In an elevated rate environment, and with significant offers at tenors of 10 years and 12 years, we printed this deal at the shorter-dated end of the curve, leaving the longer tenors open for lower-rate funding in the future.”

Lloyds Bank acted as sole placement agent on the deal.

Rory Brown, director of private placements at Lloyds Bank, said: “The heavily oversubscribed transaction reflected the highly rated and highly regarded position of the issuer in the market and was testament to the strength of the Bromford story – providing sustainable, affordable homes to their customers.”

Newbridge Advisors provided treasury advice, and Trowers & Hamlins provided legal advice to Bromford. Addleshaw Goddard also acted as the counsel for investors.

Grant Vaughan, a partner at Newbridge Advisors, added: “This demonstrates Bromford’s access to a broad range of liquidity, seeing strong demand from both UK and US investors.

“This is a testament to their financial and operational strength, enhanced through their ongoing dedication to investor relations, which was reflected in the size of the bid book and the universally positive investor endorsement they received.”

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Picture: Alamy
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