HousingNews

Bond aggregator MORhomes lends £30m to new borrower

By 20/10/2020No Comments

Bond aggregator MORhomes has taken its total issuance to more than £400m after raising £30m for a new housing association borrower.

MORhomes has lent £408m to 17 housing associations (picture: Getty)

MORhomes has lent £408m to 17 housing associations (picture: Getty)

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Bond aggregator MORhomes has taken its total issuance to more than £400m after raising £30m for a new housing association borrower #UKhousing #SocialHousingFinance


Eastlight Community Homes took the majority of funding in the form of a tap of MORhomes existing 3.4 per cent bond maturing in 2038. The tap brings the total issued through that bond to £391m.

Overall, MORhomes has now lent £408m to 17 housing associations since it completed its first deal in February 2019.

Eastlight – a 12,000-home association based in Essex and formed earlier this year through the merger of Colne Housing and Greenfields Community Housing – will use the funding to invest in new affordable homes.



Patrick Symington, chief executive of MORhomes, said: “With macro-economic risks increasing and uncertainty regarding housing association ratings following the UK sovereign downgrade by Moody’s, we are delighted to have executed this transaction and achieved an excellent price for our shareholder/borrower.

“Our flexible and efficient processes enable our borrowers to move quickly and pick a time that is right for them and right for the market. 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.”

David Hall, executive director of resources at Eastlight, said: “The terms of the funding model offered by MORhomes suited Eastlight very well and we are very pleased to have been able to access the market so quickly. This will enable us to deliver our significant investment commitments and continue to build more affordable new homes in Essex and beyond.”

Barclays acted as sole bookrunner on the deal.

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