• About
    • About Us
    • A History of THFC
    • The Board and Staff
    • Our Structure & Governance
    • News & Press
    • FAQs
  • For Borrowers
    • Why borrow from THFC?
    • Our Borrowers
    • ESG and Sustainable Investment
    • Retrofit Funding Scheme
  • For Investors
    • Overview
    • Sustainable Bond Framework
    • Key Information
    • Financial Statements
    • Investor Presentations
    • Credit Opinion
  • THFC Insights
  • Contact Us
  • About
    • About Us
    • A History of THFC
    • The Board and Staff
    • Our Structure & Governance
    • News & Press
    • FAQs
  • For Borrowers
    • Why borrow from THFC?
    • Our Borrowers
    • ESG and Sustainable Investment
    • Retrofit Funding Scheme
  • For Investors
    • Overview
    • Sustainable Bond Framework
    • Key Information
    • Financial Statements
    • Investor Presentations
    • Credit Opinion
  • THFC Insights
  • Contact Us

THFC prices issuance from social housing sector’s largest bond

2021-07-16

A blog image thumbnail.

The Housing Finance Corporation (THFC) has returned to market with a sale of retained bonds from its £1bn-plus Funding No.3 loan, providing £16m to two smaller housing associations at an effective rate of 2.10%.

The bonds were priced at a spread of 102bps over Gilts, with a steady execution in the face of volatile market conditions caused by higher than expected inflation figures in both the UK and USA.

At 2.10% for 22 years, today’s funding exercise exemplifies THFC’s ability to provide access to competitive finance to housing associations of all sizes. THFC’s Funding No.3 bond, at £1.078bn is the largest in the sector, though in size, was recently matched by the total issuance (across four bonds) of THFC’s  subsidiary, bLEND, which now stands at £1.098bn. With over £7.8bn of outstanding issuance THFC group is now the largest mutual lender to the social housing sector.

THFC’s CEO, Piers Williamson, said: “Our Funding No.3 bond has been an important source of funding for associations of all sizes for a decade, consistently delivering highly competitive costs of funds. This ability to provide consistency and equality of access for all our borrowers is a core part of THFC’s model and purpose”.

“In our thirty-four year history we have endured recessions, political uncertainty and a pandemic, so while inflation may present new challenges to the sector, we will still be there to support them in the way only THFC can do.”

Proceeds from today’s transaction will go to two borrowers: Inquilab Housing Association and Merthyr Tydfil Housing Association.

Established in 1986 to tackle housing need among black and minority ethnic (BME) communities, Inquilab now owns over 1,300 homes across West London. As an existing THFC borrower, Inquilab will use the £10m priced today to support their development of new affordable homes.

Merthyr Tydfil owns 1,147 homes with a strong local focus, and today’s transaction marks its introduction to the THFC group. The funds from today’s transaction will be used as part of Merthyr Housing’s growth strategy to increase its provision of affordable homes by almost 200 units by 2025.

Inquilab’s Director of Finance & Resources, Eric Nelson-Addy, said of the deal “today’s pricing represents a great result for Inquilab, allowing us to build up resilience in our business plans. Tackling the chronic shortage of affordable housing requires associations to evolve in a sustainable and impactful way and locking in long-term funding at low rates is a key part of that evolution.”

Samantha Taylor, Director of Corporate Services at Merthyr Tydfil, said “having now became a THFC borrower we look forward to strengthening this relationship as we continue to provide quality affordable homes for Merthyr Housing’s residents. Securing funds at such a great rate allows us to support our ambition to grow and invest in our stock and enhance the services we provide tenants.”

Share:

Related Articles

A blog image thumbnail.

Uncategorized

THFC helps Scotland’s largest housing group reduce rate on EIB loan by 60 per cent

THFC has helped Scottish housing association Dunedin Canmore, part of Wheatley Group, reduce the interest rate it pays on a.

2021-10-05

Learn More
A blog image thumbnail.

Uncategorized

bLEND lends £40m to longstanding borrower

bLEND has today priced a £40m tap of its 2047 bond for longstanding customer, Mosscare St Vincent’s (MSV) housing association..

2021-03-25

Learn More
  • About Us
  • For Borrowers
  • For Investors
  • FAQs
  • Contact
  • Terms and Conditions
  • Modern Slavery Policy
  • Privacy Policy
  • Cookie Policy
  • Sitemap
Designed By Red 13
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT