Network Homes issues £200m sustainable private placement
03 May 2022
We have finalised the terms of a £200 million private placement in a club deal involving existing institutional investors including Barings, MetLife Investment Management and Nuveen.
The transaction has been issued under our newly launched Sustainable Finance Framework with proceeds to be applied against eligible sustainable projects over the life of the notes. It is fully secured with maturity terms ranging from 15 years to 30 years, with a delayed draw of three months.
We launched the private placement with £150 million on the cover of the transaction but upsized to £200 million following strong demand across the tenor curve with the orderbook from existing investors exceeding £300 million. The deal follows their pioneering capital markets issuance in January 2019 and July 2020. The 2019 private placement was the first in the sector which comprised of both secured and unsecured notes on the same transaction, while the 2020 private placement had the longest known tenor for an unsecured investment in the sector.
The transaction was priced with very attractive rates in February despite challenging market conditions, demonstrating the resilience of the private placement market for social housing issuers.
Network was responsible for all direct investor dialogue and building the orderbook.
The funding provided by this transaction will support us with achieving our strategic sustainability targets and provide more affordable housing to those in need.
We’re really pleased to have accessed the capital markets through existing and valued investors, having cultivated deep relationships since our earlier transactions - with regular and expansive dialogue outside of funding rounds. This provided Network Homes with the enhanced agility to navigate capricious market conditions to secure an exceptional result and our first sustainable private placement issuance. In line with our social purpose, we’re proud this new funding will be invested into helping both current and future generations enjoy sustainable and affordable homes.Anup Dholakia, Director of Corporate Finance at Network Homes