A housing association serving Teesside and North Yorkshire has secured investment of £250m from a sustainable bond issue.
Beyond Housing, which is based in Redcar and has offices in Scarborough, operates around 15,000 homes in the Tees Valley and North Yorkshire.
The landlord’s successful refinancing - thought to be the first of its kind in the social housing sector - will allow it to press ahead with its plans to develop green homes while continuing to deliver social value to its tenants and neighbourhoods.
The deal will also enable Beyond Housing to make significant interest savings, which it says it will use to invest in its existing and emerging communities.
The bond issue was based on the company’s sustainable bond framework, which sets out its social and environmental objectives.
Beyond Housing’s social activity includes employability programmes, alongside income and financial support while its environmental targets include reducing energy bills and consumption in new and existing homes, tackling fuel poverty and ultimately decarbonisation and the replacement of gas-heating.
Rosemary Du Rose, chief executive of Beyond Housing, said: “Receiving such a vote of confidence from a wide range of investors, is a ringing endorsement of our work at Beyond Housing and a vote of confidence in the North East region more widely.
“The funds raised in this bond will enable us to be front and centre in contributing to the levelling-up agenda, providing quality homes and neighbourhoods as our area goes from strength to strength.
Most Read
“At Beyond Housing we are committed to sustainability, and genuinely care about the work we do in supporting customers and communities and having a positive impact on their lives.
“This bond will enable us to invest in existing properties, providing more energy efficient homes and helping us move to becoming a carbon zero organisation. In addition, it will help us deliver our ambitious development programme, providing value for money and securing the company’s long-term plans.”
Beyond Housing, which is registered as a community benefit society, is one of the largest registered housing providers in the North East and North Yorkshire.
It worked with Lloyds and Natwest banks on the bond issue.
Kirsty Garrett, director on the Lloyds Bank DCM team said: “Beyond Housing has stretching sustainability targets embedded within its development programme and the establishment of its sustainable bond framework enables the association to align its long-term funding plans with its corporate strategy. This was welcomed by investors, who were attracted by Beyond Housing’s clear ESG (Environmental, Social, and Corporate Governance) strategy, consistently strong financial performance and experienced management team.
“The transaction generated a robust orderbook, which enabled Beyond Housing to price a successful debut issuance and position itself positively for a future sale of its retained bonds.”
George Flynn, debt and financing solutions at NatWest said: “Beyond Housing has a very strong ESG story, with targets to reduce its environmental impact and a clear social impact focus around regeneration, tackling homelessness and providing affordable housing.
“The management team captured investors’ attention and showcased the organisation’s sustainability credentials through the marketing phase, which resulted in strong oversubscription during execution. This positions Beyond Housing very well for future capital markets activity and will support the construction of high-quality affordable housing in the North East of England.”