We’re the first in the housing sector to secure a long-dated sustainability bond
We are committed to delivering our long-term, sustainable development plans.
To help us achieve this we have refinanced using a sustainability bond, attracting investors to the tune of £250 million. This will enable us to make significant interest savings to allow us to invest even more into our communities.
The bond issuance was based on our Sustainable Bond Framework, which sets out our social and environmental objectives.
Our social activity includes our employability programmes, together with income and financial support. Environmental targets include reducing energy bills and consumption in new and existing homes, tackling fuel poverty and the replacement of gas heating.
Rosemary Du Rose, Chief Executive of Beyond Housing, said: “Receiving such a vote of confidence from a wide range of investors, is a ringing endorsement of our work at Beyond Housing and a vote of confidence in the North East region more widely.
The funds raised in this bond will enable us to be front and centre in contributing to the levelling-up agenda, providing quality homes and neighbourhoods as our area goes from strength to strength.”
“At Beyond Housing we are committed to sustainability, and genuinely care about the work we do in supporting customers and communities and having a positive impact on their lives.
This bond will enable us to invest in existing properties, providing more energy efficient homes and helping us move to becoming a carbon zero organisation. In addition, it will help us deliver our ambitious development programme, providing value for money and securing the company’s long-term plans.”
Kirsty Garrett, Director on the Lloyds Bank DCM team said: “The Lloyds Bank team successfully worked with Beyond Housing to issue its inaugural £250m sustainability bond.
“Beyond Housing has stretching sustainability targets embedded within its development programme and the establishment of its sustainable bond framework enables the association to align its long-term funding plans with its corporate strategy. This was welcomed by investors, who were attracted by Beyond Housing’s clear ESG strategy, consistently strong financial performance and experienced management team.
The transaction generated a robust orderbook, which enabled Beyond Housing to price a successful debut issuance and position itself positively for a future sale of its retained bonds.”
George Flynn, Debt and Financing Solutions at NatWest said: “The NatWest team is delighted to have supported Beyond Housing on the issuance of its inaugural sustainability bond, marking the first long-dated (>20 years) sustainability bond in the social housing sector.
“Beyond Housing has a very strong ESG story, with targets to reduce its environmental impact and a clear social impact focus around regeneration, tackling homelessness and providing affordable housing. The management team captured investors’ attention and showcased the organisation’s sustainability credentials through the marketing phase, which resulted in strong oversubscription during execution. This positions Beyond Housing very well for future capital markets activity and will support the construction of high-quality affordable housing in the North East of England.”
Gary Grigor, Banking and Finance Partner at Devonshires Solicitors: “We’re delighted to have advised Beyond Housing on the successful restructuring and refinancing of their existing debt facilities and their own named bond issue. The bond issue, led by Julian Barker and Alice Overton, attracted significant interest settling at £165m drawn and £85m retained at a coupon of 2.125% – a truly fantastic outcome for Beyond Housing.
“Beyond Housing now has the funds in place to deliver on its ambitious development targets over the coming years to support the communities of Redcar and Cleveland and North Yorkshire in ensuring they have access to good quality affordable housing for years to come.”