Catalyst Housing Ltd has successfully undertaken a £150 million tap of its existing 3.125% £250 million 2047 secured bond. Whilst Catalyst initially went to market with a minimum issuance of £100 million, investor demand saw Catalyst able to increase this to £150 million and reduce spreads to 155 basis points (bps) over gilts, this seeing a yield of 2.255% and receipts of £176 million.
The 32,000-home provider, rated A (negative outlook) by S&P, will use the new funds to support investment in affordable housing in London and across the counties.
Tim Jennings, Executive Director for Finance at Catalyst, said: “From decision to completion, this tap-issue has taken just six weeks, and all achieved during the lockdown. I am very pleased with the outcome and investors’ appetite for our bond, and would like to thank Michaela Booth, Director of Corporate Finance, and her team for their agile and flexible approach to achieving a successful issuance.”
Catalyst recently retained its G1/V1 rating for governance and financial viability, following an in-depth assessment by the Regulator of Social Housing.
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NOTES TO EDITORS
More information on Catalyst
Catalyst is one of the leading housing associations in London and the South East, managing over 32,000 rented and shared-ownership homes, and we are a member of the G15 group of largest housing associations in London.
We are experts housing development, placemaking and building tenure-blind neighbourhoods. Our approach to creative design, effective urban planning and high quality development is underpinned by our long-term interest in our neighbourhoods. By adopting a stewardship role, we ensure that the places we help to create are well maintained, look great and remain desirable places to live. A prime example of Catalyst’s work is our flagship regeneration project in North Kensington, Portobello Square.
Catalyst Communities, our social and economic investment arm, helps our communities grow with bespoke neighbourhood strategies that help deliver initiatives such as youth mentoring projects, after school homework programmes, exercise classes and much more. We also deliver an individual offer to our most vulnerable residents, with services such as financial inclusion courses to help people with their money, parenting support classes for young families and employment courses for those out of work.
For more information, please contact:
Charlotte Stamper – Head of External Affairs
020 3693 2464 | 07815525365
Calum McConnachie – External Affairs Manager
020 8832 3139 | 07779 288 489