bLEND prices new £260m benchmark deal
The Housing Finance Corporation (THFC) issues a new £260m 7-year bond through its bLEND vehicle with an additional £150m retained for future demand
The 7-year maturity is the shortest achieved for a secured Housing Association bond of this size, demonstrating bLEND’s broad appeal to the sterling investor base.
Despite recent market volatility, the all in spread of 100bp over the Gilt and a yield of 5.26% represents strong execution for bLEND’s borrowers, demonstrating THFC’s ability to provide access to competitive finance for housing associations of all sizes.
Proceeds from the transaction will support existing THFC borrowers Metropolitan Thames Valley (MTVH) and Leeds Federated Housing Association (LFHA). MTVH completed their loan agreement in March 2025. While LFHA has been a borrower in bLEND since 2020, a further undrawn committed facility was completed in 2023 to allow them to take advantage of an issuance window such as the one offered by the current transaction.
The addition of retained bonds will allow THFC to quickly access markets for more associations who are seeking to diversify the source of their shorter-term funding.
This transaction brings THFC’s total issuance through bLEND to more than £1.7 billion.
Ian Johnson, CFO of Metropolitan Thames Valley, said:
“We are pleased to have raised £250m of additional funds through THFC’s bLEND vehicle that will back our strategy to build more affordable homes and continue to invest in our existing estate. THFC’s bLEND offers us a flexible funding solution that widens our investor base and provides access to the shorter dated end of the market at cost-effective rates.”
Jason Ridley, Director of Finance & IT at Leeds Federated Housing Association Limited, said:
“Before completing on this new funding, the association has benefited from the low-cost liquidity provided by bLEND and a long-established relationship with THFC. This funding enables us to invest in building new homes and supports our programme of improvements to existing homes – this contributes to our overall purpose of helping people make a home. We are pleased with the funding outcome and have been very ably supported by the THFC team and our Treasury advisors, David Tolson Partnership to achieve cost-effective funding.”
Gavin Richards, THFC’s Head of Relationship Management said:
“It was great to work with the team at Leeds Federated, and to build on the 35+ year relationship with MTVH. The retained bonds issued as part of this transaction will allow new and existing THFC clients to benefit from funding in this maturity at short notice.”
Will Stevenson, THFC’s Group Treasurer said:
“We are really pleased to be able to open up the shorter end of the market for housing associations and sterling investors. The £150m of retained bonds will allow us to rapidly respond to reverse enquiries from investors.”
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Notes to editors
For more information:
- Housing Associations: Gavin.Richards@thfcorp.com
- Investors: Will.Stevenson@thfcorp.com
- Media: Ahrens@thfcorp.com
About THFC
THFC has been the UK’s leading affordable housing aggregator for more than three decades, providing innovative funding solutions for over 150 housing associations across all four nations of the UK. THFC has amassed a near £8bn loan book to date and continues to expand its range of financial products to serve the needs of the social housing sector. THFC has made significant contributions toward solving the UK’s affordable housing crisis, having funded 32,000+ homes under Affordable Housing Finance Plc, which oversaw the government’s initial Affordable Housing Guarantee Scheme. The aggregator launched bLEND Funding Plc in 2018 which has grown to provide committed facilities to 34 housing associations totalling £1.7bn. In February 2025 THFC announced the launch of a groundbreaking £150m partnership with the National Wealth Fund to finance retrofitting of affordable homes alongside its new lending vehicle THFC Sustainable Finance Plc.
About Metropolitan Thames Valley (MTVH)
Metropolitan Thames Valley provides affordable housing for people living in London, the South East, East Midlands and East of England. We own and operate around 57,000 properties and provide decent, affordable homes for over 120,000 residents.
We also offer a range of care and support services. Our specialist areas include older people, mental health and transitional services which provide intensive support to marginalised or vulnerable people.
As part of our neighbourhood investment programme, we deliver training courses, events and activities for our residents, designed to boost employment opportunities and foster stronger communities.
MTVH is a member of the National Housing Federation and the G15 – which represents London’s largest housing associations – which seek to influence policy for the benefits of our residents and the wider sector.
About Leeds Federated Housing Association Limited (LFHA)
Leeds Federated is a housing association with around 4,500 properties across Leeds, Wakefield and North Yorkshire that exists to provide good quality affordable homes that people want to live in.
We aim to maintain a highly satisfied customer base and a dedicated and motivated staff team that provide good quality, value for money services for customers.
With an ambition to deliver sustainable growth we actively seek out a range of development opportunities that will enable us to offer more much-needed affordable housing in the communities we operate.
For more information, visit our website at www.lfha.co.uk