02.07.2010 - TradeRisks arranges £180m bond for Notting Hill Housing Trust
Notting Hill Housing Trust, one of London’s leading affordable housing providers, owning and managing over 26,000 homes across London and the wider South East, (“NHHT”) has successfully launched and priced a £180m debut 32 year bond issue. TradeRisks acted as Arranger for the transaction.
The deal, which is rated Aa3 by Moody’s achieved a margin of 110 basis points over the 4.5% UK Treasury Stock 2042, one of the tightest margins on any own-name bond issue from the housing sector in recent years. The all-in yield of 5.259% was also one of the lowest achieved by any recent housing related bond issue.
The bond was issued by Notting Hill Housing Trust, the asset owning parent of Notting Hill Housing Group.
Paul Phillips, Group Finance Director of Notting Hill Housing Group said:
“We are delighted that investors have shown confidence in Notting Hill’s business plan as well as of the credit quality of the sector and supported this issue so positively. The bond will reduce our cost of capital, enabling Notting Hill to continue to reinvest in its homes as well as supporting our development programme of over 1,000 new homes each year. The issue further re-enforces our strong financial base, which we use to help those who cannot afford to buy their own home in London.”
04.09.2009 - TradeRisks sets new capital markets benchmark with £175m deal for Sovereign Housing Group
TradeRisks, the investment banking boutique, today announces the successful launch of a £175m debut 30 year bond issue for Sovereign Housing Group, one of the UK’s leading affordable housing providers.
Phil Jenkins, Managing Director at TradeRisks commented: “This deal stands out because the all-in yield and the issue margin were significantly tighter than any deal seen since the collapse of Lehman Brothers and the freezing of the credit markets.”
The deal, which was structured and arranged by TradeRisks, was issued at a margin of 155 basis points over the 4.75% UK Treasury Stock 2038 achieving an issue yield of 5.705%. Sovereign Housing was rated Aa2/AA- by Moody’s and Standard and Poor’s respectively.
In a new approach to this type of transaction, Sovereign and TradeRisks structured, rated and documented the deal prior to selecting a distribution agent through a competitive process to distribute the bonds. The process ensured that the transaction costs were kept to the lowest possible level while still delivering a well structured deal which was welcomed by investors.
Phil Jenkins added: “This new approach provides a template for other Housing Association borrowers in the capital markets”
Further Information:
TradeRisks +44 20 7382 0900
Phil Jenkins, Managing Director
philjenkins@traderisks.com
www.traderisks.com
Notes to Editors:
About TradeRisks
TradeRisks Limited is an FSA regulated investment banking boutique providing independent advice, financing and risk management solutions to UK and international groups within the essential services, infrastructure and public sectors.