Allia C&C has arranged a tap of the MORhomes 3.4% bonds, raising £28 million for Calico Homes from a new investor. The new bonds were issued at a yield of 2.768%, a spread of 154bps (1.54%) over the benchmark gilt rate, which was significantly below the current bid price. This is the lowest spread that has been achieved since the launch of the bond in February 2019.
Patrick Symington, Chief Executive of MORhomes, said: “We are delighted to have executed this transaction and achieved an excellent price for our new borrower, Calico Homes. Our flexible and efficient processes enable our borrowers to move quickly and borrow the amount they need at a time that is right for them and right for the market. In this case we were able to execute the deal within 3 days of receiving the instruction from the borrower. With a range of other benefits such as flexible use of security and minimal business covenants we are becoming one of the leading options for fixed term debt for housing associations.”
Adrian Bell, Chief Executive of Allia C&C, said: “ We are delighted to be able to support MORhomes on this financing. MORhomes is becoming increasingly popular with investors and we are delighted to have executed our second placement for them, building on the reverse enquiries we are receiving from investors.”