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Centrus Advises on Housing Association Sector’s First “Green Bond”

Peterborough-based Cross Keys Homes has announced the successful pricing of a £150 million bond issue (including £45 million retained bonds) through its treasury financing company, Cambridgeshire Housing Capital plc. The issue carries an Environmental, Social and Governance (“ESG”) accreditation – thought to be a first for a housing association.

The bond carries a coupon of 4.250% and has a maturity of 31 years, and was priced at a semi-annual yield of 4.297%, which equated to a spread of 1.20% over the benchmark gilt at the time of pricing.

Part of the bond proceeds will be used to develop around 250 new homes per annum and also an early repayment of £55 million of existing bank debt – part of a wider and complex re-structuring of Cross Keys Homes’ existing banking facilities and derivatives portfolio designed to deliver increased funding flexibility to support future growth plans.

We would like to congratulate Julian Foster and the team at Cross Keys for their efforts in securing a successful bond issue and completing a complex banking re-negotiation.