Notting Hill hits 110bp low with debut £180m bond issue
bondsNotting_Hill Notting Hill HT has issued a £180 million bond at a margin of 110 basis points over the gilt – the lowest achieved in recent years.
The margin beats the 115bp low achieved by London & Quadrant HG in January.
Notting Hill’s issuance came in at an all-in cost of funds of 5.259 per cent, slightly below L&Q’s 5.5 per cent all-in cost.
At 32 years, the term length was slightly longer than the sector norm.
The RP’s debut issuance was rated Aa3 by Moody’s.
Traderisks acted as arranger for the transaction with Barclays Capital and Santander Corporate Markets acting as joint book-runners.
Phil Jenkins, managing director at Traderisks, said: ‘With the lowest spread and all-in yield of any recent own-name housing issue, as well as the longest maturity in 2042, Notting Hill has set a new benchmark for success in the sector.’
Notting Hill plans to use the cash to fund its 1,000-unit-per-annum development programme.
