Onward Homes raises £215m in first bond issue

A leading North West housing association has raised £215m of investment to deliver its business plan, following its first bond issue earlier today.

Onward Homes provides affordable homes for rent and sale in the North West, owning and managing over 35,000 homes in the region.

In December, Onward secured a top credit rating of A1 (Stable) from rating agency Moody’s, which noted that the business has a very strong balance sheet, with low debt and strong liquidity. Earlier today, Onward completed its first bond issue, which was met with very strong demand from the market and as a result has raised £215m, on favourable terms, to support its business plan. Onward achieved a loan margin of 0.88%, which is the amount paid over the gilt yield. This is the lowest ever long-term margin for a UK housing provider. 

Chief Executive, Bronwen Rapley, said:

“Our successful bond issue is the completion of a five-year process to create a single organisation from five separate housing associations. We are now realising the financial strength of our united organisation. The investment raised will underpin our business plan for the years ahead, to deliver considerable social, environmental and economic impact in the North West.

“We are well positioned to make a significant contribution to a green and inclusive recovery in our region by building 500 new quality homes a year and investing in communities. We are committed to supporting the Northern Pound by using our spending power within the North West wherever possible, creating community wealth, reducing carbon and maximising positive social impact in the communities we serve.” 

In 2020, Onward retained top G1 and V1 ratings from the Regulator of Social Housing. By securing a top credit rating and undertaking a successful bond issue, the business has once again demonstrating its sector-leading financial and governance credentials.