Orbit, one of the largest housing groups in the UK has secured £450m in a 30-year bond deal to support its ambition of delivering 20,000 new homes over the next 10 years.
The 40,000-home landlord raised the senior secured bonds with a coupon of 3.375% and an all-in cost of finance at 3.46%.
Joy Baggaley, Group Finance Director at Orbit, added: “We set out to put in place stable, long-term funding to support our development programme and deliver much needed homes. We were delighted by the strong level of interest from the investor community evidenced by the significant oversubscription in our issue, which meets all our corporate finance and business objectives.”
Orbit met around 25 investors during its roadshows. Bookrunners were Barclays, HSBC, Lloyds Bank and NatWest Markets.
Ratings agency Moody’s recently confirmed Orbit’s high A2 credit rating, changing the outlook from stable to negative to reflect its plans to increase capital expenditure. The agency highlighted Orbit’s ‘strong market position in the Midlands and its healthy unencumbered asset position which enhances its borrowing capacity’.
A leading developer in the social housing sector, Orbit delivered 2,030 new homes last year of which 1,210 were social and affordable homes, making a marked contribution to the country’s housing supply.