LONDON, UK: Sanctuary Group has issued a £150m tap of its existing 2.375% secured bonds due 2050, a statement said.

Successfully navigating the current volatile market backdrop, the tap issuance attracted a broad number of investors, with a final orderbook that was over 5x subscribed.

The deal priced below the Group’s existing cost of capital, at a spread of G+163bps, improving on the original spread of G+170bps when the initial bond was issued in April 2020. The blended yield across the 30-year bond is 2.9%, representing good value for money for the Group.

Sanctuary Group, which manages over 105,000 homes across England and Scotland, is rated A2 (stable) and A (stable) by credit rating agencies Moody’s and Standard & Poor’s respectively.

Ed Lunt, Sanctuary’s Chief Financial Officer, said: “We are pleased to have secured this tap issue, particularly in the turbulent economic conditions, with the bond proceeds supporting our corporate priorities of growth and investment in our homes for the long-term benefit of our customers.”

“The joint active book runners on the transaction were Lloyds Bank Corporate Markets and RBC Capital markets, with Newbridge Advisors LLP acting as advisors.”

Established in 1969, Sanctuary is responsible for the provision of social housing, care and management services across England and Scotland. It owns or operates over 105,000 units of accommodation and employs over 12,500 people.

Sanctuary Group, operates under a not for profit umbrella, with surpluses reinvested into the provision of affordable housing, the maintenance of existing properties, and the development of new services for customers.

Sanctuary is an exempt charity under the Charities Act 1993 and is regulated by the Regulator of Social Housing.