A2Dominion announces £250M funds raised via wholesale bond
A2Dominion Housing Group has issued a £250m 3.50% unsecured sterling bonds due 2028 off its recently established £1bn Euro Medium Term Note (EMTN) programme, obtaining funding at an effective interest rate of 3.56%, a spread of 230 bps over the reference gilt. Both the programme and issue were rated A+ by Fitch Ratings, mirroring the housing group’s long-term corporate rating.
The proceeds of the issue will be lent to other members of the A2Dominion Group.
Commenting on the wholesale bond, Dean Tufts, A2Dominion’s Executive Director (Finance & Strategy) said:
“This wholesale bond issue is part of our continuing strategy to maximise long-term funding opportunities for use throughout the Group. The bond issue means we can support our continuing delivery of high-quality sustainable homes for rent or sale on the open market.”
Naveen Rathour, Associate Director at Lloyds Bank who was the sole bookrunner for the deal said:
“Following strong investor engagement during a three-day roadshow in London and Edinburgh, a £250m 12-year unsecured institutionally-targeted bond was priced utilising A2Dominion’s recently created EMTN programme. The recent inclusion of A2Dominion’s existing retail bonds in the Bank of England’s eligible security list for its Corporate Bond Purchase Scheme, along with the broadening appeal of unsecured housing association credit, meant that the deal was competitively priced with a 3.50% coupon, having generated significant investor demand.”
A2Dominion is a residential property group with 36,000 homes across London and the South East, and thousands more in the development pipeline. The Group provides affordable, private sale, private and social rented homes, student, key worker and temporary accommodation, as well as supported and sheltered housing.
A2Dominion completed 1,127 new homes last year and achieved a record surplus of £114.5m.
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Notes to the Editors
A2Dominion is a residential property group with 36,000 homes across London and the south east, and thousands more in the development pipeline.
The Group provides affordable, private and social rented homes, student, key worker and temporary accommodation, as well as supported and sheltered housing.
It also offers high-quality sustainable homes for sale and shared ownership, available through its FABRICA by A2Dominion brand.
The Group has a unique approach to housebuilding, generating profits for a social purpose instead of for shareholders, with millions of pounds reinvested each year into building much-needed affordable homes and supporting local communities.
A2Dominion is part of the g15, a group of the largest housing providers in London.