Anchor Hanover Group, a not-for-profit provider of housing and care for older people, has issued its first sustainability bond, raising £350 million. The issue was more than two times oversubscribed, with a spread of 0.93% and an all-in coupon of 2%.
Anchor Hanover stated that the refinancing has provided increased financial resilience, strengthened liquidity and new funding to build thousands of additional homes for later living. Anchor Hanover will use the investment as part of its commitment to deliver 5,700 new sustainable homes over the next 10 years and expand its care home portfolio, alongside ongoing investment in its existing services.
The successful bond issue follows a £300 million unsecured sustainability-linked revolving credit facility and a £350 milion unsecured bridging loan alongside a sustainability-linked hedging transaction. The bridging loan has been refinanced by the public bond.
The bonds were distributed to around 30 UK, European and global institutional investors with priority given to those investors likely to retain a long-term relationship with Anchor Hanover. The investors also included Hanover specialist impact focused asset managers.
As part of its refinancing, Anchor has secured a long-term A+ credit rating from S&P Global Ratings.
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.
Anchor Hanover’s chief financial officer Sarah Jones 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.”
Phil Jenkins, managing director of Centrus Financial. added: “Centrus is fully committed to sustainability and ESG, so we are thrilled at the immense investor demand for Anchor Hanover’s debut sustainability bond issue reflecting its position as one of the best rated organisations in the housing sector. This successful deal is the culmination of the innovative refinancing of Anchor Hanover’s treasury portfolio. We are delighted to have worked closely with Anchor Hanover, who are pioneering leaders in the housing and care for older people.”
Date published: July 21, 2021