Places for People raises £500m in sector’s largest unsecured bond issuance

Places for People, which manages around 240,000 homes, said the funding will be used to refinance debt and to invest in improving the safety and quality of its existing homes, and also to provide new and affordable homes in partnership with Homes England.

Out of the £500m raised from the bond issuance, £374m was used to refinance existing debt.

This includes repaying £224m outstanding on an old 5.09 per cent £380m bond that matures in 2024 and £150m of a £400m 2.875 per cent bond that matures in 2026.  

The tenders were done to “help actively manage the profile of maturing debt”, the landlord said.

It fits with the group’s new treasury policy, which changed since the 2024 bonds were issued, to only pursue unsecured debt. 

It also follows Places for People issuing around £146m of capital markets debt through its EMTN programme in June. 

Places for People has now raised around £280m in 2023.

Matt Cooper, tax and treasury director at Places for People, said: “The success of this bond issuance not only demonstrates investors’ confidence in our sector but also in our organisation. The demand we received is a testament to investors’ commitment to supporting the sector in developing new homes and to reach its ambitions for more energy-efficient homes.”

He said the funds will go towards the landlord’s aim to deliver 7,000 new affordable homes by 2026, helped by Homes England. 

Newbridge served as Places for People’s financial advisor and Allen & Overy and Brodies for Scots law as its legal advisors, while Clifford Chance served as the funder’s legal advisor. M&G Trustee was the security trustee.

Before issuance, Places for People’s credit ratings were affirmed at A3/A-/A by Moody’s, Standard & Poor’s and Fitch respectively.

Places for People is currently graded G1/V2 by the Regulator of Social Housing.   

Sector commentators agreed that the deal highlighted a healthy appetite for the sector from investors. 

George Flynn, director of Savills Financial Consultants, told Social Housing: “Certainly, the demand and pricing on the deal were strong indications of investor interest in the sector.”

Maria Goroh, head of capital markets at Centrus, told Social Housing: “It’s a great deal for Places for People. It shows that investors are confident in the sector for unsecured effective pricing.”