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LiveWest raises £250m through second EMTN bond

News15 Feb 2021James Wilmore

LiveWest has raised £250m through a 35-year bond, its second issuance from its Euro Medium-Term Note (EMTN) programme. 

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LiveWest operates across South West England (picture: Getty)
LiveWest operates across South West England (picture: Getty)
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LiveWest raises £250m through second Euro Medium-Term Note programme bond #UKhousing

The bond was priced at an all-in rate of 1.904 per cent, at a spread of 90 basis points over gilts, the group said. Twenty-six investors were involved in the issuance, nine of whom are new investors, LiveWest said.

 

The 38,000-home landlord will access £150m of the funds immediately and retain the rest for later use, it said.

 

The group, which operates across the South West of England, said it will use the funds to help with plans for 6,000 new homes over the next five years.

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Last September LiveWest warned that completions in the financial year to March 2021 would halve as a result of the pandemic.

 

In half-year results, published in November, the group reported that handovers of affordable units fell 58 per cent to 190 as a result of COVID-19.

 

However, it revealed a 54 per cent jump in net surplus to £40m in the six months to September 2020, helped by selling off homes outside its core area.

 

Following the latest bond issuance, Melvyn Garrett, deputy chief executive and executive director of finance at LiveWest, said: “Our focus is very much on delivering a substantial increase in the number of new affordable homes, delivering high-quality services and ensuring that our financial and organisational resilience underpins our ambitious plans.”

The landlord issued its first bond from its EMTN programme, which is rated A2 by Moody’s, in October 2019. This transaction saw the group raise £250m though a 24-year bond at an all-in rate of 2.346 per cent.

 

Other social landlords to have launched EMTN programmes include L&Q, Clarion, A2Dominion and Places for People.

 

The bookrunners in LiveWest’s latest transaction were Lloyds Bank and Barclays, with legal advice from Trowers & Hamlins and Addleshaw Goddard, the association said.

FinanceHousing Association/RPLenderSouth West
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