Burnley based housing association Accent has priced a £225m. public bond so it can deliver new homes and services to its 5,000 residents living across the region.
Accent, which has been working across Lancashire for over 50 years, has priced the bond at a coupon (or interest) rate of 2.625%. This is the lowest ever rate secured by a housing association in the UK for a bond greater than 12 years.
The bond, which has a term of 30-years, is the first for Accent. It comes after over two years of detailed planning and hard work to transform the association’s business, governance, finances and new corporate strategy.
Accent will use the bond to build over 2,000 new homes across the country in the next five years. A number of these are planned for the region in areas which include South Ribble, Preston and the Ribble Valley. The association will also invest in its existing homes and provide new and improved services for all its 35,000 residents who live across the country.
Accent chief executive Paul Dolan said: "This is a fantastic outcome for Accent. It has exceeded all our expectations and it will help us improve the homes and services we provide across Burnley and Lancashire, build many more new homes for people in housing need and make a huge difference to our residents.”
Bookrunners on the Accent deal were Barclays, Lloyds Bank Corporate Markets PLC and Nat West Markets who were very positive about Accent’s business plans, governance and organisational structure which increased the demand from investors and resulted in such a successful bond issue.
The bond has set has set a new precedent for future business in the social housing sector across England.