UK housing provider issues £250m bond

Longhurst Group will use the capital to deliver 700 affordable homes per year over the next six years.

Lincolnshire-based housing provider Longhurst Group has raised £250 million (€283 million) through the issue of a bond to support its plans to deliver affordable housing in the UK.

The bond, £100 million of which is in retained funds, was issued through the Libra 2 Treasury special purpose funding arm and priced at a spread of 148 basis points over the benchmark gilt. The notes are repayable after 25 years and were more than two times oversubscribed. Savills Consultants advised Longhurst on the issue.

The housing association will use the proceeds of the bond to meet its plan to deliver 700 affordable homes a year over the next six years. The latest project adds to the company’s existing portfolio in the Midlands and the East of England, which includes 22,500 properties.

“We will be using the proceeds from the bond issue to fund our forward development programme where we are looking to deliver around 700 much-needed new homes each year for affordable rent, low-cost home ownership and market sale,” said Rob Griffiths, deputy chief executive and chief financial officer at Longhurst.

“There was great investor appetite for this bond, demonstrating the strong support for Longhurst’s plans to continue to grow its business and support its communities,” Mike Roche, a director at Savills Financial Consultants, added.