Southern Housing Group successfully issues inaugural Sustainability Bond
Southern Housing Group Limited, one of the UK’s largest housing associations, has successfully raised £250m of funding through a public bond issuance, with a further £50m retained.
This transaction marks the first issuance under the Group’s newly established sustainable finance framework which sets out its commitment to environmental responsibility and community investment through a robust governance framework.
Proceeds from the bond will be used to fund a range of projects to help the Group meet its sustainability objectives. This includes the delivery of new affordable and sustainable housing, retrofitting existing housing stock to meet modern efficiency standards, and a wide range of community investment initiatives aimed at improving the lives of residents through the Group’s Southern 360 arm.
The 15-year bond was priced at a coupon of 2.375% and was significantly oversubscribed, with a diverse range of investors who share the Group’s commitment to ESG principles.
Amanda Holgate, Chief Financial Officer at Southern Housing Group, said: “We are delighted with the overwhelming appetite to invest in the organisation, which is both a recognition of our long-term financial strength and an endorsement of our commitment to providing high quality affordable homes. We would like to thank our investors for providing such strong backing as we build a more sustainable future. We are also very grateful for the support of our treasury advisors, Centrus, our three bookrunners, NatWest Markets, HSBC and MUFG, and for the support provided by Devonshires and JLL for legal and valuation services respectively. Our thanks also go to our auditors, PwC, and the team at Pinsent Masons acting for the bookrunners.”
The issuance further enables Southern Housing Group to align its financing with its core social and sustainable purpose, helping to meet the growing need for sustainable and affordable housing and investing in improving the communities and neighbourhoods in which the Group operates.