Anchor Hanover Group has raised £350m through the launch of its first sustainability bond.
The funds will be used to support the not for profit provider’s delivery of 5,700 sustainable homes for older people, to expand its residential care home portfolio and invest in existing services.
Sarah Jones, Chief Financial Officer, Anchor Hanover, said: “We have ambitious plans to meet the increasing needs of older people in a sustainable way. This very successful issue means we can continue to evolve our housing and care offer so more people can have a home where they love living in later life.”
The transaction attracted strong engagement from investors with the issue being more than two times oversubscribed, with a spread of 0.93% and an all-in coupon of 2%.
Building on the organisation’s strong focus on sustainability, the group is committed to achieving a minimum Energy Performance Certificate rating of B or above for every new home developed and all new homes will have access to sustainable, renewable energy sources.
The successful bond issue follows a ground-breaking £300m unsecured sustainability-linked revolving credit facility and a £350m unsecured bridging loan alongside a first-for-the-sector sustainability-linked hedging transaction. The bridging loan has been refinanced by the public bond.
As part of its refinancing, Anchor Hanover has secured a long-term A+ credit rating from S&P Global Ratings. This is one of the highest in the sector, reflecting the quality of management and underlying operational and financial strength.
Centrus acted as sole financial advisor to Anchor Hanover, supporting the development of the refinancing strategy as well as its structuring and implementation. The bookrunners were Barclays, NAB, MUFG and Santander.