UK healthcare REIT Assura has announced the pricing of its first Social Bond in an amount of £300 million with a tenor of 10 years after a series of UK fixed income investor meetings generated strong institutional demand.
Assura says the bond will bear interest at a rate of 1.5% a year and is issued by Assura Financing plc and guaranteed by Assura and a number of the Assura group’s subsidiaries.
Following the issuance of the bond, Assura’s weighted average debt maturity will increase from 6.8 years to 7.8 years and the pro forma weighted average cost of debt will reduce to 2.69%.
The bond is the first issued under the Assura Social Finance Framework and the proceeds will be used to fund or refinance eligible social projects, specifically the acquisition, development or refurbishment of publicly accessible primary care and community healthcare centres.
Jayne Cottam, Chief Financial Officer, said the move was part of a strategy to “become the UK’s number one listed property business for social impact”.
“The issuance of our first Social Bond demonstrates our commitment to contributing to the communities in which we operate and will be used to support our continued investment in providing more fit-for-purpose primary and community healthcare centres,” she said.
Date published: September 9, 2020