A2D Funding launches 4.75 per cent unsecured sterling bonds
A2D Funding has launched an offer of 4.75 per cent unsecured sterling bonds due 2022.
The bonds are guaranteed by A2Dominion Housing Group, one of the largest social housing providers in London and the south east of England. The proceeds of the issue will be on lent to members of the A2Dominion Group which comprises A2Dominion and its subsidiaries. The bonds are eligible for retail investors.
A2Dominion operates across 82 local authority areas in London and the south east of England, as owner and manager of around 34,000 homes, and has approximately a further 3,500 homes in development.
A2Dominion has been rated AA- (Outlook Negative) by Fitch Ratings. Fitch has also assigned the bonds an expected long-term local currency rating of AA- (Outlook Negative) (EXP).
The bonds will pay a fixed rate of 4.75 per cent per annum, payable semi-annually in arrears and will mature on 18 October 2022. They have a minimum initial subscription amount of GBP2,000 and are available in multiples of GBP100 thereafter.
Canaccord Genuity and Lloyds Bank are acting as joint lead managers on this issue.
The offer period is now open and is expected to close at 12 noon (London time) on 15 October 2013. The joint lead managers retain the right to close the offer early.
Dean Tufts, A2Dominion’s executive director (finance and strategy), says: “Our retail bond issue is part of our strategy to maximise our long-term funding opportunities and diversify our sources of funding. The bond issue will support our provision of high quality housing services and allow us to further invest in both affordable homes and housing let on the open market.”
The bonds are expected to be listed on the UK Listing Authority's Official List and admitted to trading on the London Stock Exchange's regulated market and through the electronic Order Book for Retail Bonds.