£250m bonds issue as Stonewater ramps up affordable housebuilding programme
Stonewater, one of the UK’s leading social housing providers, ramped up its ambitious affordable housebuilding programme this week (3 November) with a £250 million, 3.375% bonds issue it will retain for future sale to investors.
We are looking at ways to increase our affordable housebuilding programme and retaining these bonds as a reserve that we can draw on when we need to raise money for future housing developments,” says John Bruton, Stonewater’s Executive Director of Finance. “Maturing in 2045, these bonds, represent another source of funding for Stonewater, alongside a loan which we hope to conclude in due course with the European Investment Bank.”
The bonds, issued through Stonewater’s funding subsidiary, Stonewater Funding plc, will help bolster the housing organisation’s significant housing development programme which is set to deliver 2,765 new affordable homes over the next four years.
“The bonds, which bear a nominal interest rate of 3.375%, will be sold in the future at a price which reflects prevailing market rates,” explains John Bruton.
Stonewater currently owns and manages 31,500 homes in England ranging from affordable properties for general rent, shared ownership and sale, to retirement and supported living schemes, Foyers and women’s refuges. Stonewater, which was formed in 2015, is due to hand over its 2,000th affordable new home in January next year.