Catalyst issued a 30-year bond and raised £250m at 130 basis points over the gilt and a coupon of 3.125%. This is the third lowest coupon ever achieved by a housing association for a tenor of 30 years or longer, an excellent result for a debut issuer.
The bonds will mature in October 2047, and were priced over the UKT 1.5% 2047 gilt on Tuesday (24 October 2017). The all-in cost was 3.210 per cent to Catalyst Housing Limited, which has an A+ (negative) rating from S&P. Bookrunners were Natwest Markets and Royal Bank of Canada. The issue was over two times oversubscribed by investors.
The money raised by this bond issue, secured at historically low rates, will be used to build Catalyst Housing Limited’s development pipeline towards its target of 1,000 homes per year by 2020.
Rod Cahill, Catalyst’s Chief Executive, said:
“This result testifies to Catalyst’s financial, governance and management strength, making us an organisation which bond holders are keen to invest in.
“The money raised also provides a solid foundation to achieve Catalyst’s other commitments: to become a stronger business, to provide excellent customer experience and to attract and retain the talent that make Catalyst an even greater place to work.”