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 per cent bonds issue it will retain for future sale to investors.
John Bruton, Stonewater’s Executive Director of Finance says:
“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. 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.
John Bruton explains:
“The bonds, which bear a nominal interest rate of 3.375 per cent, will be sold in the future at a price which reflects prevailing market rates.”
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.