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Orbit raises £50m of retained bond to fund development plans

Orbit, A1 rated by Moody’s, has successfully issued £50m of its retained bond at an all-in rate of 3.081%, which is more than 50 basis points lower than the all-in rate of the original bond issuance back in March 2015.  


The decision was made to issue after the 39,000-home housing association participated in the successful sub 2% Affordable Housing Finance (AHF) bond, in which it raised £50m, and to take advantage of the reduction in the long term gilt. 


The issue was three times oversubscribed, which shows investor confidence in the organisation as the second largest developing housing association. 


Jonathan Wallbank, Treasury Funding Manager for Orbit, said: “We felt it was the right time to issue our retained bonds and make the most of the current reduction of the reference longer term gilts. 


“We are delighted with the rate achieved and with the participation of both existing and new investors of the organisation in our retained issuance.”


The funding will support Orbit’s 2020 Vision target of building 12,000 homes.