Thrive Homes raises over £100,000,000 of bond funding

Home-counties based housing association Thrive Homes has raised over £100,000,000 in bond funding through two Forward Purchase Agreements with institutional investors. The funds raised will help Thrive invest back into the communities in which it operates by enabling the professional landlord and developer to provide more affordable housing in some of the country’s most desirable regions.

The new bonds are a “tap” of the existing 4.68% 2051 bond. Given interest rates have fallen since the original issue in 2014, £75,000,000 notional of bonds have been sold to generate this funding. £45,000,000 of bonds were sold to Aberdeen Standard Investments and a further £30,000,000 to Pension Insurance Corporation PLC. The funding will be received in two instalments, on the 31 March 2022 and 30 September 2022.

Mark Farrar, Executive Director of Resources at Thrive Homes commented: “This financing will support the delivery of new homes in line with our Medium-Term Plan, as we continue to grow our portfolio from 5,000 homes over the next 10 years.”

“We operate across some of the most expensive areas in the UK and this new injection of funding will allow us to increase housing availability for those who may not be able to buy or rent in the private housing market.”

Thrive Homes worked with Centrus as financial adviser on this transaction and Devonshires as legal advisers, with Addleshaw Goddard providing legal advice to the investors.