THFC taps Funding No 3 for £131m
The Housing Finance Corporation has tapped its Funding No 3 bond issue for a further £131 million, to channel to 10 social landlords.
The issue, which was priced at 200 basis points over the gilt, had an all-in cost of 4.948 per cent.
This represents another upward step in margins but a continuation of the downward trend in overall pricing.
This is mainly thanks to the low level of British gilts, as international investors continue to seek safe assets.
Just five investors participated in the THFC issue.
RBC and RBS acted as book-runners.
The 10 participating landlords were: Dumfries & Galloway HP, West Kent HA, United Welsh HA, Fold HA, New Gorbals HA, Charter Housing, Women's Pioneer Housing, Salvation Army HA, Cadwyn HA and Connswater Homes.
Of these, Dumfries & Galloway took the most with £40 million, while West Kent drew £25 million and retained a further £10 million.
United Welsh drew £15 million and retained £5 million.
Fold and New Gorbals drew £10 million each, while Charter and Women's Pioneer drew £5 million each.
Salvation Army took £3 million, Cadwyn took £2 million and Connswater took £1 million.
