RHP issues £100m bond tap
RHP has successfully issued a £100m tap of its existing bonds – helping to deliver on our ambition to build hundreds of new affordable homes for local people.
The tap issue was designed to increase the size of the existing bond and re-establish RHP’s position as one of the sector leaders in the housing association bond market.
The bond, which was well-oversubscribed with c.£400m of orders, will support RHP’s investment in quality homes and services, as well as innovating to deliver affordable homes for the ‘priced out’ generation of young people in South West London, using modular construction and SMART technology.
After a virtual roadshow, RHP priced the £100m tap of its outstanding 2048 bond on Tuesday 08 September 2020, at Gilts+105bps, at an all-in yield of 1.787%. The tap includes a £25m retained element to issue at a later date.
This is the tightest new issue spread on a long dated housing association bond since lock down began.
Ahead of the bond, Standard & Poor’s reaffirmed RHP’s strong rating, at A+ stable, maintaining its position as one of the highest rated Housing Associations in the sector.
Corinna Bishopp, RHP’s Executive Director of Finance, said: “We are really pleased with this result and the level of investor interest in RHP. This financing will allow us to make considerable progress with our ambitions to support our local community and provide more desperately needed housing. This is particularly the case where we’re planning to build more homes for people who currently can’t afford to rent on the private market or buy within our operating areas. This means we’ll be able to help ensure that our local communities aren’t losing their top talent which, of course, includes key workers. It will also mean we can invest more in existing homes through our new home standard and major safety programmes to make sure our homes are good quality, safe and secure.”