TradeRisks sets new capital markets benchmark with £175m deal for Sovereign Housing Group

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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 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.