Places for People closes the sector’s biggest ever bond to enable the creating and supporting of thriving communities
08 December 2023
The new issuance was raised on 27th November 2023, alongside an any and all tender offer on one bond due to mature in 2024 and a capped tender on another due to mature in 2026.
The UK’s leading social enterprise, Places for People, has today closed the sector’s biggest-ever bond. The £500million bond, which is only the second issuance in the sector this year, was issued alongside a tender offer for an existing secured bond which was due to mature in July 2024 and a £150m capped tender offer for a £400m unsecured bond that matures in August 2026.
The new bond was issued from Places for People’s Sustainable Finance Framework to refinance debt and also to generate more funds to be invested into Places for People’s communities in England and Scotland.
Despite current macro-economic uncertainties, the issuance attracted over 85 investors with the bond pricing at UKT+165bps.
The funds will be used to invest in improving the safety and quality of Places for People’s existing homes and also to provide new and much needed affordable housing under the Group’s Strategic Partnership with Homes England.
Matt Cooper, Tax and Treasury Director at Places for People commented: “Our business creates and supports sustainable communities that enable our customers to thrive. We’re proud of our purpose and the positive impact we believe we can have on our society.
“The success of this bond issuance not only demonstrates investors’ confidence in our sector but also in our organisation. The demand we received is a testament to investors’ commitment to supporting the sector in developing new homes and to reach its ambitions for more energy-efficient homes. We also believe that, like us, they think our purpose is strong and vital.
“In addition to allowing us to refinance conventional bonds with sustainable finance, this issuance will allow us to continue to invest in our existing housing for the wellbeing of our customers and communities. It will also contribute to delivering 7,000 new affordable homes by 2026, in partnership with Homes England.”
Before issuance, Places for People’s credit ratings were affirmed at A3/A-/A by Moody’s, S&P and Fitch, respectively. Places for People are also rated G1/V2 with the Regulator of Social Housing.