14.11.2008 - Investors replace banks for social housing funding
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07.11.2008 - TradeRisks launches £275m bond for Circle Anglia as part of £1.5bn Note Programme
Circle Anglia Press Release - 7 November 2008
Circle Anglia Group – Issue of £275 million Secured Bonds Due 2038
Circle Anglia Group, one of the UK’s leading providers of affordable housing, announces today it has launched and priced a £275 million 30 year fixed rate bond through its capital markets issuance vehicle Circle Anglia Social Housing PLC. The bonds carry a coupon of 7.25% and are rated Aa3 by Moody’s Investor Service.
The bonds are secured by assets and guarantees provided by the 6 RSLs within Circle Anglia’s funding group, Circle 33, Mole Valley, Old Ford, Roddons, South Anglia and Wherry.
The launch of the deal means that Circle Anglia’s 30-year business plan is now fully-funded through committed long term facilities.
This deal was part of a £1.5bn Note Programme structured jointly by TradeRisks and RBC Capital Markets. The arranger on this issue was RBC Capital Markets which is the leading arranger of bond transactions to the RSL sector. TradeRisks acted as financial advisor to Circle Anglia in relation to this transaction.
Calum Mercer, Group Finance Director of Circle Anglia said “We are pleased to have secured additional long-term funding for Circle Anglia. Investors have recognised the strength of our business, our track record and clarity of strategy. Our financial and commercial strength underpins our success as we reinvest all profits back into the business to fullfil our social objectives.
As one of the largest housing groups in Greater London and the South East, we are a core part of our communities. Our scale and concentration of housing is key to achieving a higher quality of accommodation, and greater efficiency, flexibility, and stability. We will continue to improve the housing and lives of those in our communities, and to have a real impact by delivering our social purpose."
Phil Jenkins, Director, Global Infrastructure, RBC Capital Markets, said “The success of this issue, in the face of challenging market conditions, reflects both the underlying strength of the RSL sector and its continued attractiveness to institutional investors. Raising £275 million on their debut issue is a clear demonstration of investor appetite in Circle Anglia.”
For further information:
Brunswick Group LLP
+44 207 404 5959
Nigel Prideaux
Pavla Shaw
Notes to Editors
About Circle Anglia Group
Circle Anglia is one of the UK’s leading providers of affordable housing. With a dedicated team of more than 1,600 staff, Circle Anglia manages more than 46,000 homes, including supported and sheltered housing, for more than 180,000 people across the UK.
Its mission is to provide ‘So Much More’ to its residents, teams and wider stakeholders by providing great homes and reliable services, and building sustainable communities to improve people’s life chances.
The Circle Anglia group includes 10 partners. Seven registered social landlords (RSLs): South Anglia Housing, Wherry Housing Association, Old Ford Housing Association, Circle 33
Housing Trust, Roddons Housing Association, Mole Valley Housing Association and Russet Homes; two support & care partners: EPIC Trust and Invicta Telecare, as well as Commercial Services Circle Anglia for shared ownership, market rent and private sale properties.
In 2007 Circle Anglia won the ‘best small development” award at the Affordable Home Ownership Awards for the ‘Ice block’ in Islington, Best Employer category in the 2007 Eastern Daily Press Recruitment Awards and the Gold Award at Old Ford for ‘building cohesive communities’. Circle Anglia group is certified as ‘Investor in People’.
For more information about Circle Anglia and its partners, please visit www.circleanglia.org, email pressoffice@circleanglia.org or call 0845 234 0824.
About RBC Capital Markets
RBC Capital Markets is the corporate and investment banking arm of RBC and is the 12th largest investment bank globally (Bloomberg, April 2008). RBC is active globally in fixed income, foreign exchange, infrastructure finance, metals, mining and energy through 75 offices in 16 countries. Our international fixed income and treasury businesses are managed from London, which is the centre of a 24-hour trading platform, with major hubs in London, Sydney, New York and Toronto.
RBC Capital Markets Global Infrastructure business, headquartered in London and staffed by over 100 professionals, is the leader in the provision of investment banking services to public and private sector clients providing essential infrastructure and services. RBC provides the full range of advisory and funding services to greenfield and brownfield businesses:
M&A advice on acquisitions and disposals
Public Private Partnerships (PPP)
Sourcing of equity and private placements
Debt structuring & rating
Senior bank debt and bond underwriting and distribution
Acquisition finance, Mezzanine and illiquid debt
Derivatives and risk management (interest rate/exchange rate/inflation/commodities)
RBC’s areas of expertise comprise:
Transportation: ports, airports, rail, roads, tunnels, bridges, waterways, car parks, buses
Social & Fixed Infrastructure: healthcare & hospitals, higher education, schools, defence, social housing, urban regeneration
Utilities & Environment: electricity & gas networks, renewable energy, waste, water
For more information please visit www.rbccm.com
About TradeRisks
TradeRisks provides corporate finance, debt and investment management advice to some of the largest UK housing associations. Its clients own in excess of 350,000 residential properties in the UK.
Key areas of expertise include:
Debt issuance – bank debt, capital markets, private placement
Derivatives pricing, execution, and strategy optimisation
Project modelling and evaluation
M&A
Fund management
Treasury services including risk management and performance measurement
For more information please visit www.traderisks.com