Case Studies
Delivering successful outcomes for our clients

Centrus advises Accent Group on sale of £125m of retained bonds

Accent Group – a national housing association operating in the North, East and South of the country – has sold the £125 million of bonds remaining from its July 2019 debut issuance.

The 30-year listed bond was a first for the c 20,500 home landlord and was issued, at the time, at the lowest ever coupon for a bond greater than 12 years within the sector.

The successful sale of the retained bond followed a virtual marketing exercise by the Accent team in early October, which was well received by the investor community.

The funding will support Accent’s development programme in which it aims to deliver over 4,000 new, affordable homes over the next 10 years, in addition to investing in existing homes and transformational services for Accent’s customers.

Commenting on the success, Paul Dolan CEO of Accent Group said: The Accent team are delighted with the success of the issue as this marks the culmination of many months of hard work to ensure we remain in a strong position to deliver our corporate strategy and make our contribution towards the UK housing crisis through the development of new, affordable homes. The response from the investors demonstrates their confidence in our financial strength and our future priorities. We are committed to accelerating and advancing the services we deliver to our customers, especially in the face of a turbulent economic and operating landscape.
Commenting on the process, David Royston, Executive Director of ICT and Finance, said: We are delighted to have successfully sold all of the retained bonds remaining from our record debut issuance in July 2019. This positions Accent well to continue successfully growing our land-led development pipeline and investing meaningfully in our existing homes and services in order to meet our clearly defined corporate objectives for our customers benefit.
Jonathan Clarke from Centrus, independent advisers to Accent, said: We were pleased to work with Accent and the bookrunners on this successful transaction. The Accent team has a well-considered strategy and clear approach in terms of engaging with investors and that helped them achieve a good result in a slightly more challenging rates environment.

Accent’s legal advisor on the transaction was Trowers & Hamlins.

Funders’ valuation was done by Savills with Wright Hassall acting as security legal advisors.

NatWest and Lloyds acted as bookrunners for the retained bond sale which was priced at 100 basis points over the benchmark gilt for a yield of 2.401%.

 

Press release date: 14th October 2021