Hyde housing association issues £400m bond

London-based housing association Hyde has financed itself through a £400 million bond, understood to be the largest long-dated bond to be issued from the sector.

London-based housing association Hyde has financed itself through a £400 million bond, understood to be the largest long-dated bond to be issued from the sector.

The 35-year bond was issued buy Martlet Homes, a subsidiary of the group which is focussed on providing affordable homes in the south east of England. Peter Denton, who joined Hyde as group finance director from Starwood Capital earlier this year, said that by issuing the bond through Martlet “we initiated a public bond programme via a very transparent effectively ring fenced entity”.

Peter Denton joined Hyde from Starwood earlier this year

The bond carries a 3 percent coupon and was rated A+ by Standard & Poor’s. Barclays and Lloyds Bank acted as book-runners.

“In terms of long-dated funding from the sector, this not only represents the largest single tranche of debt raised, but also the lowest coupon. To achieve this in the current climate is an impressive feat and testament to the strength of Martlet and its management,” Grant Vaughan of Lloyds Bank said.

Hyde is planning to build 6,000 new homes in the south east over the next five years. “Our purpose as a housing association is to provide a place to live for as many people left behind by the market as possible. The housing crisis in London and the South East of England is a huge and longstanding problem, which will only be solved if we all play our part and this deal demonstrates that Hyde is serious about creating more than our fair share of new homes the region needs,” said Hyde’s chief executive, Elaine Bailey.

In October 2015, Hyde sourced a £150 million long-term refinancing facility from Legal & General Commercial Lending. The facility, which expires in 2041, is secured on Hyde’s housing assets.

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