Saffron ‘sets new standard’ with oversubscribed £125 million bond at 112 bps with defer options

Saffron Housing Trust has issued an £125 million bond with deferred drawdowns and the lowest spread to gilts for a small-medium sized HA to date.

Stephen Flowitt-Hill, finance director at Saffron, which owns and manages 5,000 homes and was established as an LSVT from South Norfolk District Council in 2004, said it ‘sets a new standard for associations of our size’.

The bond was raised with a final maturity of 2048 and a fixed interest rate of 4.641 per cent, with a spread over the reference gilt of 112 bps...