Paradigm prices 20-year bonds at 87bps over gilts, in £250m sustainable issuance

Paradigm, which was originally formed in 1988 through the first large-scale voluntary transfer in the country, is graded G1/V1 by the Regulator of Social Housing.

The association has a credit rating of A+ from S&P. This was affirmed in a research update in May 2022, with the agency maintaining its view that Paradigm’s rating is not reliant on the expectation of extraordinary government support.  

The group made its bond debut in 2021, which was also a sustainability bond, in a £350m 30-year issuance, at a coupon of 2.250 per cent.  

The landlord said that issuing another bond under its sustainability financing framework “reinforces Paradigm’s commitment to becoming a net zero carbon business by 2050” in line with the objectives set out in its 2021-2026 corporate plan.

Paradigm said the proceeds would support its ambition to invest in good-quality, safe and energy-efficient homes in the South East of England. 

Nicola Ewen, chief finance officer at Paradigm, said: “We are pleased to have returned to the capital markets with our second bond.

“The feedback we received from investors reinforces our financial strength, strong management and our commitment to building and investing in safe and sustainable homes in our operating area.” 

Matthew Bailes, chief executive of Paradigm, said: “The feedback we got from investors and the margin we achieved reflected the strength of the business and the grip we have on efficiency, risk, development and operational delivery.”

The association’s financial advisors were Centrus, with legal advice from Trowers & Hamlins. Barclays and Lloyds were the bookrunners on the bond, with legal advice from Pinsent Masons. JLL were the valuers.