Record £250million bond issued to market

Providing customer excellence is at the heart of everything we do and this increased investment will help to further improve the services that our customers rely on and to develop more affordable homes for those who need them.

Glenn Harris, Chief Executive

We have issued our strongest bonds issue ever to the market today with an issue of a 30 year £250 million bond (£150m retained) at Gilts plus 120 basis points for an all in yield of 1.831%. This is the record lowest coupon ever achieved for a Midland Heart bond and confirms its attraction to investors as well as capitalising on historically low gilt rates. The bond issue has been assigned a sector leading A1 debt rating from Moody’s.

The allocation of the best rating possible is a reflection on our strong operating position, which is a result of the delivery of a solid corporate strategy focusing on the provision of accommodation to help people live as independent a life as possible across the Midlands.

Our strong financial position is further enhanced by ambitious development plans to build 3,000 new homes between 2019 and 2024 with 570 homes already completed, another 1,060 on site and 1,000 in the pipeline.

The capital raised from the bond’s issue will further support our work to help fill the gap for the need of affordable housing in the UK.

Our Chief Executive Glenn Harris commented: "We're extremely pleased to be issuing this bond with our strong A1 debt rating. This is testimony to the strong financial position Midland Heart is in and will help us to support the post Covid-19 economic recovery in the Midlands.

"Providing customer excellence is at the heart of everything we do and this increased investment will help to further improve the services that our customers rely on and to develop more affordable homes for those who need them."

The bond was arranged and placed by TradeRisks Ltd and Trowers & Hamlins provided the legal advice.