Treasury without borders: charting new frontiers in global funding markets

Unlocking new capital through global diversification

Global markets offer opportunities to tap into pools of capital that are not only larger but also exhibit different investment appetites.

Investors from North America, Asia and continental Europe are increasingly looking for stable, socially responsible assets. Social housing, with its predictable income streams and strong social impact, fits this profile well.

Stonewater Funding PLC, our dedicated funding vehicle, has established a £1bn note programme that allows us to issue notes in various currencies.

This flexibility enables us to engage with a diverse investor base and potentially secure funding at more competitive terms.

By issuing instruments in foreign currencies or engaging with international investors through cross-border platforms, housing associations can mitigate concentration risk and potentially secure funding with more competitive terms.

Foreign currency financing can also serve as a natural hedge against domestic economic uncertainty, providing a new layer of financial resilience.

Which untapped markets offer significant potential?

While the UK has traditionally dominated social housing funding, markets such as Japan, South Korea and the Gulf Cooperation Council countries show growing interest in long-term, impact-driven investments.

Sovereign wealth funds, pension funds and insurance companies in these regions are actively seeking stable returns tied to social outcomes – a perfect match for housing associations aiming to expand capacity.

Emerging markets may also offer opportunities, particularly for blended finance structures where development banks partner with private capital.

These arrangements can deliver both social impact and financial returns, providing a model for future-proofing funding strategies.

Learning from pioneering global strategies

Other sectors have already demonstrated the value of global diversification.

Universities, infrastructure developers and healthcare providers have increasingly turned to international bond markets, tapping institutional investors with long-term horizons.

These organisations have learned that careful structuring, robust credit frameworks and clear communication of impact are critical to attracting global capital.

Stonewater’s approach mirrors these strategies. Our S&P Global Ratings of A- (stable) reflects our strong financial position and commitment to transparency.

By adopting similar strategies, the social housing sector can not only meet immediate funding needs but also build a sustainable, internationally diversified financial foundation.

Conclusion

The question is no longer whether social housing can access global capital, it’s whether we are ready to embrace it strategically.

By looking beyond the sterling horizon, housing associations can unlock new funding sources, strengthen financial resilience and deliver homes at a scale and pace that match societal demand.

At Stonewater, we are committed to charting these new frontiers, ensuring that social housing is not bound by borders but empowered by opportunity.

Anne Costain, chief financial officer, Stonewater