The deal for the Peterborough-based provider - which owns and manages just over 10,000 homes - includes £45m of retained bonds and was issued through its treasury financing company, Cambridgeshire Housing Capital.

The bond carries a coupon of 4.25% and has a maturity of 31 years, and was priced at a semi-annual yield of 4.297%, which equated to a spread of 120 bps over the benchmark gilt at the time of pricing.

It is also believed to be the first time a housing association bond has carried an environmental, social and governance (ESG) accreditation.

Advisers on the deal said this enables the HA to ‘effectively highlight its environmental credentials to the UK investor base’ and ‘ensured investors demonstrated a keen appetite to invest’.

Part of the bond proceeds will be used to develop around 250 new homes per year.

It will also repay £55m of existing bank debt. The group said this represents part of a wider re-structuring of Cross Keys Homes’ existing banking facilities designed to deliver increased funding flexibility to support future growth plans.

The HA was created in 2004 to take over the stock of over 9,000 units from Peterborough City Council.

Cross Keys had £178m of drawn loans at the end of the 2013 financial year with £248m of assets, with 3x interest cover and an average cost of funds of 3.7%. It had a £46m turnover and 30% operating margin.

Joint bookrunners on the bond - which had been given an AA- rating by Standard and Poor’s - were Lloyds Bank and the Royal Bank of Scotland.

Centrus Advisors acted as treasury and funding advisors and Trowers & Hamlins acted as legal advisors to both the banking restructure and the bond issue.

Mick Leggett, chief executive at CKH, said: ‘This is fantastic news and reflects the growing financial strength of our business. We have completed our 1000th new home this year and our new funding arrangements will enable us to play a leading role in meeting the significant need for new homes to be built in Peterborough and across Cambridgeshire.’

Grant Vaughan, director in corporate debt capital markets at Lloyds Bank Commercial Banking, said: ‘This is the first ESG bond issued in the social housing sector and allowed Cross Keys Homes to effectively highlight its environmental credentials to the UK investor base.

‘Cross Keys homes’ track record, its strong credit rating and the environmental and social aspect of the bond ensured investors demonstrated a keen appetite to invest.’

S&P said at the time of the rating that it expects stable and adequate profitability levels to continue to mitigate the risk of higher debt levels. It also said a large share of its properties, or 83 per cent, is allocated to general needs and affordable housing tenures.

CKH are now recruiting a new CEO following as Mick Leggett is taking retirement.