Newbridge was delighted to have advised Sanctuary Group with the £150m tap of its 2.375% secured bonds due 2050.
Sanctuary, which manages over 105,000 homes across England and Scotland, is rated A2 (stable) and A (stable) by credit rating agencies Moody’s and Standard & Poor’s respectively. It is one of the largest housing associations in the UK.
The deal priced below the Group’s existing cost of capital, at a spread of G+163bps, improving on the original spread of G+170bps when the initial bond was issued in April 2020. The blended yield across the 30-year bond is 2.9%, representing good value for money for the Group.
Ed Lunt, Sanctuary’s Chief Financial Officer, 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.”
Chris Evans, Director at Newbridge Advisors commented: “When exploring the capital markets, there will often be an element of volatility but, with the significant economic and political headwinds issuers currently face, many have needed to delay / postpone issuance plans. Sanctuary however, successfully generated a final orderbook that was over 5x subscribed, a fantastic outcome which demonstrates the strength of the underlying credit story”.