• 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
  • For Investors
    • Overview
    • Sustainable Bond Frameworks
    • 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
  • For Investors
    • Overview
    • Sustainable Bond Frameworks
    • Key Information
    • Financial Statements
    • Investor Presentations
    • Credit Opinion
  • THFC Insights
  • Contact Us

Sector-leading aggregator THFC achieves tighter spread for borrower in retained bond sale

2020-02-17

A blog image thumbnail.

The Housing Finance Corporation today sold £13.2million of retained bonds to be on-lent to housing association Irwell Valley Homes, based in Greater Manchester. The THFC (Funding No. 3) bonds were priced at a spread over Gilt of 120bps against the backdrop of a positive post-election market.

With over thirty years’ experience as an aggregator in the social housing sector, THFC was able to achieve an effective rate of 2.286% on the retained bonds just a year after pricing the first £11.8m tranche at 3.176%. At over £1billion issued, Funding No. 3 bond is one of the largest bonds in the social housing sector and consistently achieves competitive pricing, reflecting its perceived liquidity as well as THFC’s A grade credit rating. There remains just over £60m in Funding No. 3 retained bonds, which THFC expects to on-lend within the next year.

Irwell Valley Homes maintains a sizeable housing stock across a variety of tenures, as well as providing specialist services, including to the homeless or those with mental health issues. Helen Nicholson, Executive Director of Finance and Governance at Irwell Valley Homes, said:

“We are delighted to have secured the second drawdown of our loan with THFC at such an attractive rate.”

Nicholson added: “This is an important element of Irwell Valley Homes’ funding plan. It will enable us to invest in and increase the supply of affordable homes through our significant development programme, whilst maintaining our strong financial position.”

THFC’s Chief Executive, Piers Williamson, said:

“Today’s success demonstrates once again THFC’s ability to get the best for our borrowers. The flexibility of the split deal structure with retained bonds meant we could take advantage of current positive market conditions and low gilt yields to achieve even tighter pricing for Irwell Valley Homes and help them build much needed homes for their communities.”
THFC also issues bonds through its subsidiary bLEND, which is similarly well-placed to offer quick speed to market under its £2billion MTN programme.

Share:

Related Articles

A blog image thumbnail.

News

THFC awarded ACT CPD Employer Accreditation

At a time when politicians are bemoaning the lack of formal training for bankers, The Housing Finance Corporation (THFC) has.

2014-07-30

Learn More
A blog image thumbnail.

News

THFC Bond deal breaks 5% Cost barrier!

At a time when bank pricing is once again increasing for housing associations, THFC took advantage of continued low Gilt.

2012-01-18

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