Newbridge advises The Guinness Partnership on retained bond sale and £400m new bond issue

May 11, 2020 Published by
Over the last 12 months, Newbridge have worked with The Guinness Partnership to establish and implement the most appropriate funding strategy to further their ambitions to provide more low cost housing to tenants in England.The funding strategy contemplated funding requirements; sequencing; and of course the best sources of funding. As Guinness had Retained Bonds from their 2044 Bonds, it was important to consider the sale of these bonds in the context of a larger new public bond issuance.


Retained Bond Sale 

  • Having received a reverse enquiry from an investor, this was flagged to Guinness and an attractive proposal was discussed
  • Assisted in the structure (deferred settle), documentation, process co-ordination and of course pricing
  • Sale was completed with a minimal new issue concession

New Bond Issue

  • Guinness issued a £400 million 35-year bond with a coupon of 2.0%
  • The timing was important as this was completed almost at the height of the COVID-19 related market volatility. Careful navigation and strategising was necessary
  • Newbridge worked with the team at Guinness and helped navigate them through this unprecedented market volatility

This transaction highlights how the Newbridge team can add extensive value at each stage of a transaction’s development, from the initial planning through to successful execution. It is never certain what issues may arise throughout the life of a transaction, and we look forward to leveraging our experience to assist other social housing clients as they consider their future funding strategies.

For further information, please contact Grant Vaughan, Partner.