Newbridge advised Chelmer Housing Partnership (“CHP”) tap its existing 4.750% Dec-2043 bond by £50m.
Established in 2002 to deliver its core social purpose of meeting housing need by providing homes for rent and sale, the Essex based housing association owns or manages over 10,500 homes and provides services for over 25,000 customers.
The tap was sold at a significant premium to par resulting in CHP receiving an additional circa £19m to invest versus security pledged against the borrowing. Proceeds will be used to support the delivery of 500 much needed affordable homes across the eastern region.
Following a competitive tender exercise, CHP appointed a single bookrunner (Barclays) to explore funding options.
Paul Edwards, Deputy Chief Executive and Chief Financial Officer said: “We’re thrilled with this result, as the financing will enable us to continue with our ambitious commitment to deliver 365 new homes a year. “As we recover from the coronavirus pandemic it’s never been more important to address the shortfall of affordable housing in our region, and we have bold plans for the future. We will continue to invest wisely so we can play our part in providing great quality homes that people can feel proud to live in.”
Chris Evans, Director at Newbridge Advisors commented: “It is a tremendous outcome and this important financing milestone supports the underlying mission at CHP of transforming lives. Increasing the size of the bond to £250m improves its liquidity, a key factor for driving down the cost of future capital market activity.”