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Debut £300m public bond for Bromford
Case studies

Debut £300m public bond for Bromford

300 £300m 30 year bond
135 135 bps spread over gilts
2x Bond two times over subscribed
Background

Bromford is one of the largest social landlords in the Midlands with over 29,000 homes in their portfolio.  The Group has a development programme which will see it invest £1.5bn to build 14,000 new homes over the next 10 years. In order to facilitate this growth, Bromford wished to approach the public debt markets for the first time, with of goal of raising at least £250m.

JCRA supported Bromford through its debut public issuance, ultimately resulting in a £300m issuance for a 30-year term at an all-in fixed rate of 3.125%

Our Approach
  • Assisted with the interview process and appointment of joint lead managers – ultimately appointing Lloyds, HSBC and JP Morgan
  • Advising on the optimal structure of the bond and timing of issuance
  • Providing support through the credit rating process, including obtaining a second rating from Standard & Poor’s
  • Assisted in the marketing of Bromford to investors, including the drafting of the investor presentation and rehearsal for roadshow
  • On-going support throughout the process to both the Management and the Board
Benefits
  • Bond was two times over-subscribed – securing target of £300m
  • Achieved a spread over gilts of 1.35%  which was driven down from initial pricing of 1.45% – 1.50%
  • 21 investors
  • Bromford now top dual-rated housing association in the UK
  • Introduced new joint lead manager to the sector
 

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