Newbridge supports A2Dominion on an innovative £75m unsecured deferred EMTN transaction

January 16, 2019 Published by

A2Dominion Housing Group Limited have agreed £75 million of unsecured funding, issued off its EMTN Programme, with settlement deferred to March 2022. The 20-year bonds are priced with a fixed coupon of 4.25% and as such remove any market risk over what is undoubtedly going to be a volatile period.

Newbridge Advisors worked closely with A2Dominion to understand their funding requirements and sourced the liquidity from BAE Systems Pension Fund. The transaction is designed to minimise any refinancing risks in relation to A2Dominion’s £150m retail bond (at a coupon of 4.75%) maturing in October 2022, whilst avoiding any associated cost of carry.

Dean Tufts, A2Dominion’s Executive Director (Finance & Strategy), said “We were very pleased to secure this long-term funding which further demonstrates the prudent financial strategy we have in place. The certainty of this funding will enable us to continue our focus to deliver high quality homes and invest in local communities.”

Devonshires provided legal advice to A2Dominion Housing Group Limited, with Allen & Overy LLP providing legal advice to BAE Systems Pension Fund.