Radian secures £57 million of deferred funding

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Radian secures £57 million of deferred funding, July 28, 2015

Radian has secured £57 million of deferred funding to enable them to continue to invest in communities in the South of England.

The bonds, which were rated A1 by Moody’s Investor Services, provide Radian with £0.5 million on settlement and the remainder in in deferred instalments up to 2019. The payment terms of the bonds were agreed on issue date, providing Radian with certainty that future funding will be delivered at a known cost.

The deferred bonds, maturing in 2049, were priced at a premium of only 5bps over Radian’s pre-Budget levels.

Radian was supported by Devonshires as legal advisers and TradeRisks who advised on, arranged and placed the bonds.

Lindsay Todd, CEO Radian Group, commented “We are ensuring  we have competitive and committed funding to enable us to respond to  the challenges and opportunities ahead”’

Antoine Pesenti, MD TradeRisks, commented  “This transaction shows (i) the funding markets are still open for housing associations (ii) sophisticated investors will continue considering innovative funding structures (iii) TradeRisks continue to be the only arranger able to reliably secure deferred funding, and (iv) approach to funders is more important than ever in order to ensure the best pricing is secured post-Budget.”