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Sanctuary taps 30-year bond for £150m
One of the largest associations in the country has issued a £150m tap of a 30-year bond to support investment in its existing stock.
Sanctuary said that the tap issuance attracted a broad range of investors, with a final order book that was five times oversubscribed.
The 105,000-home landlord secured the funds at 163 basis points (bps) over gilts, marking an improvement on a spread of 170bps over gilts on an earlier £350m deal struck in April 2020.
The association said that the blended yield across the 30-year bond “represents good value for money” at 2.9%.
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Ed Lunt, chief financial officer at Sanctuary, said: “We are pleased to have secured this tap issue, particularly in the turbulent economic conditions, with the bond proceeds supporting our corporate priorities of growth and investment in our homes for the long-term benefit of our customers.”
The joint active book runners on the transaction were Lloyds Bank Corporate Markets and RBC Capital Markets, with Newbridge Advisors acting as advisors.
Sanctuary’s latest accounts, published this month, revealed how the association is planning to invest £100m in its existing homes after its operating surplus topped £178m.
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