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PA Housing raises £100m in latest bond sale
PA Housing has raised £100m to help it build more homes, by selling the retained element of a £400m sustainability-linked bond.
The 24,000-home landlord originally issued the 15-year bond in 2021, which was its first sustainable-finance issuance.
In a stock market update, the group confirmed the sale of the £100m retained element, meaning the bond has been fully utilised.
The margin and all-in cost of funds on the retained bond sale was not disclosed. The coupon payment on the bond is 2%.
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The reason for the fundraising is PA Housing’s “new build programme”, a spokesperson told Inside Housing.
Like many large landlords, the group has cut back on its development ambitions amid challenging conditions.
However, PA Housing is still aiming for 5,000 completions by the end of this decade over the 10-year period.
The group, which operates across London, Surrey and the Midlands, is also increasing investment in its homes, a trend that has increased over the past 12 months.
It comes amid an intense, sector-wide focus on housing standards and the treatment of tenants.
In August, PA Housing was among a string of landlords housing secretary Michael Gove wrote to after severe maladministration findings by the Housing Ombudsman.
Michael McDonagh, the group’s chief executive, was also asked to meet the ombudsman’s officials in March to discuss its “unacceptable” failings.
In its last full year, PA Housing’s annual surplus more than halved, to £8.5m, after it was hit by rising costs.
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