Notting Hill raises £120m via bond tap
27 July 2011
Notting Hill Housing Trust has raised over £120 million from a tap of its existing 2042 bond.
The deal priced at Gilts plus a spread of 1.20%. The Aa3 rated 2042 bond deal was subject to strong demand and generated a diverse and high quality order book quickly after the deal was announced.
Investor roadshow in London, Edinburgh and Manchester
The tap, priced at a yield of 5.285%, is a reopening of a fixed rate bond paying a semi-annual coupon of 5.25%. The deal was launched with Goldman Sachs International and Santander Global Banking & Markets acting as joint bookrunners, following three days of roadshow investor meetings in London, Edinburgh and Manchester.
The deal reinforces the resilience of the housing association sector given the market volatility over the last few weeks, pricing with a small new issue premium.
Speaking about the tap, Notting Hill's Group Finance Director, Paul Phillips said:
"We are pleased that investors have shown continued confidence in Notting Hill's business plan. Notting Hill is committed to providing quality homes for those who could otherwise not afford them. The funds raised from the tap will enable Notting Hill to continue to reinvest in its homes, and support our development programme of over 1,000 new homes each year."
Shaun Kennedy, Group Treasury Manager added:
"This is an excellent result for Notting Hill in what continues to be a difficult and challenging environment. The all in yield of 5.285% represents great value and long-term commitment, which will support the Group for many years to come."
More information
For more information on the bond tap, contact Shaun Kennedy on 020 8357 4486 or skennedy@nhhg.org.uk.
Categories: Our business, Building new homes
Tagged: Investor, Investment, Partnerships, Developer
