Housing association Bromford has secured £100m to fund plans to build thousands of new homes.
The Gloucestershire-based organisation, which has delivered around 46,000 properties across central and South West England, has received the investment from three backers in the 海角视频 and North America.
Bromford said the money would help fund its on-going development programme, which aims to complete 12,000 new homes over the next eight years.
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The group launched a transaction to the market earlier this month for a new private placement which it said had attracted the interest of eleven investors, including five potential first-time investors, to submit bids in excess of £700m across the requested tenor curve from 10 to 30 years.
Bosses at the company said In the three years since its previous capital markets issue, the social landlord had delivered more than 3,400 new energy efficient homes, retrofitted more than 1,300 homes to EPC C or above, migrated its repairs fleet to more than 100 low carbon vehicles and hired 100 apprentices and graduates.
Bromford’s director of treasury Imran Mubeen said: “These funds will enable us to continue to invest in the delivery of much-needed new affordable housing across the West Midlands and West of England. They will also fund our broad and ambitious sustainability programme which includes decarbonising more of our existing homes, improving diversity across our organisation, and coaching more of our customers into employment and training.
“With a bid book over seven times oversubscribed, and with offers across every point of the tenor curve at attractive spreads, this deal affirms that the capital markets absolutely remain open for housing associations who have a robust business plan and a compelling sustainability narrative.”
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Lloyds Bank acted as sole placement agent on the deal, with Newbridge Advisors LLP providing treasury advice and Trowers & Hamlins LLP legal advice to Bromford, while Addleshaw Goddard LLP acted as counsel for investors.
Rory Brown, director, private placements at Lloyds Bank said: “We were delighted to support Bromford’s successful return to the private placement market, with a sustainable offering aligned to their Sustainable Finance Framework. The heavily over-subscribed transaction reflected the highly rated and highly regarded position of the issuer in the market and was testament to the strength of the Bromford story - providing sustainable, affordable homes to their customers.”
The £100m private placement follows a £75m sustainability linked revolving credit facility that Bromford secured with ABN AMRO in June and a £50m sector-first innovative funding partnership with LGIM in August. It is the second deal to be printed from Bromford’s updated Sustainable Finance Framework which was published in June.
Bromford has consistently been one of the top ten biggest housebuilding housing associations over the past three years and last year completed 1,265 new homes, the most it has ever built in a 12-month period
The housing association recently received planning permission for its biggest development to date, of 180 new homes on the outskirts of Gloucester.