Orbit has raised £50m in a government-backed housing bond to fund its ongoing development plans as the second largest developing housing association.
The 39,000-home housing association raised the funds through the Affordable Housing Finance (AHF) bond at an all-in rate of 1.989 per cent, or gilts plus 41 basis points. The deal is AHF’s cheapest bond since the EU referendum.
Orbit’s two registered providers Orbit Heart of England and Orbit South and East are two of six participants in the affordable housing bond.
The bond comes in the same week the housing regulator HCA upgraded Orbit to a G1 governance rating.
Jonathan Wallbank, Treasury Funding Manager at Orbit, said: “We are delighted to participate in the latest AHF plc bond issue and with the pricing achieved. As the second largest developing housing association, Orbit is committed to building homes that meet need and aspiration of our customers now and in the future. This low cost funding will support our target of providing 12,000 much-needed new homes by 2020.”