Wheatley Group, Scotland’s largest housing, care and regeneration organisation, has tapped the capital markets for £250m, in what is the first time a Scottish housing association has raised finance through the issue of a public bond on the capital markets, writes Real Estate Capital‘s sister magazine Private Debt Investor.
The offer period closed early due to high demand from investors. The 4.4% paying bond, which is due in 2044, was more than £125m oversubscribed, according to a statement by the group. The bond was rated AA- by Standard & Poor’s earlier this year.
Proceeds will part-fund a development programme of 2,800 new affordable homes across central Scotland. Royal Bank of Scotland and Lloyds Banking Group acted as joint book runners to manage and arrange the bond.
Alastair Dempster, chair of Wheatley Group, said: “The phenomenal success of the Wheatley bond issue will benefit ultimately thousands of tenants and families across central Scotland. This is a huge vote of confidence in the critical importance of the social housing sector in Scotland in creating and sustaining strong and vibrant communities.”