Orbit, one of the UK’s largest not-for-profit housing groups, has successfully raised £250 million through a sustainability bond issue after attracting more than £1.25 billion of investor demand.
The £250 million 15-year bond, carrying a coupon of 6.125%, was priced at GILTS + 92bps and attracted strong demand from a broad range of institutional investors. The order book was five times oversubscribed, demonstrating continued confidence in Orbit’s financial strength, governance, and long-term strategic direction.
The proceeds further strengthen its long-term funding position and will support delivery of its 2030 Strategy, which has set out the ambition to provide amongst the best customer experience of any housing association in the UK.
Over the life of its 2030 Strategy, Orbit plans to invest in existing homes, services and customer experience, alongside the delivery of 7,000 new and regenerated affordable homes, helping address housing need across the regions it serves.
Phil Andrew, Group Chief Executive of Orbit, said:
“Our 2030 Strategy sets out a clear ambition: to provide amongst the best customer experience of any housing association in the country, investing in our homes and communities, and ensuring Orbit remains strong and sustainable for future generations.
“Two years in, we’re making great progress against that ambition, and this bond issuance will further strengthen our ability to invest for the long term. It will support improvements to existing homes, the delivery of new affordable housing and our work to create places where people are proud to live.
“Investors sought to commit more than five times the amount available, representing a powerful endorsement of Orbit, our people and our long-term strategy.
“Ultimately, this funding gives us the additional capacity to continue investing in the things that matter most to our customers, while delivering our ambition to provide one of the best customer experiences in the housing sector.”
Jonathan Wallbank, Group Finance Director, said:
“Demand of more than £1.25 billion for a £250 million issuance enabled Orbit to secure highly competitive pricing and further diversify its funding base. Our ability to attract as many quality investors to the transaction strengthens Orbit’s long-term funding platform and supports delivery of our strategic objectives.”
Barclays Bank PLC, Lloyds Bank Corporate Markets plc and NatWest Markets Plc acted as joint bookrunners on the issuance. Whilst Savills Financial Consultants acted as a Treasury adviser to Orbit.