Trowers & Hamlins advises Sovereign on £375m bond issue
International law firm Trowers & Hamlins has advised Sovereign Housing Association Limited on the issue of £375m bonds by their treasury vehicle Sovereign Housing Capital plc. A deal that achieved the tightest spread to gilts for an RP issue in the past two years.
Sovereign Housing is a leading housing association, striving to provide quality, affordable homes with roots in the south of England.
Trowers advised Sovereign on all aspects of the issue, structure and the on-lending from the issuer to the registered provider.
The transaction entailed the issue of £375m 2.375 per cent secured bonds due 2048. This was the first bond issue by Sovereign since 2012. £125m of the secured bonds were retained for issue at a later date.
Dale Moulden, senior associate at Trowers said:
"We are passionate about Sovereign's drive to fulfil its potential in providing quality, affordable homes in sustainable places. We share Sovereign's values in wanting to invest for the long-term and create great places to live and work."
The Trowers team comprised head of banking and finance Adrian Carter, senior associate Dale Moulden and associate Jonathan Grosvenor.
Graeme Gilbert, Sovereign’s Treasury Director, said:
“We received overwhelming interest in the bond and this major investment will allow us to continue to do more for people and places, delivering our ambitious plans and maximising our social impact. It was great to work with the Trowers team on the bond issue, marking our successful return to the capital debt markets.”
“The strong book build and overwhelming appetite from investors really confirms Sovereign’s standing and financial strength, particularly given these turbulent economic and political times.”
Sovereign has 59,000 homes focused in a core area covering Berkshire, Hampshire, Oxfordshire, Gloucestershire, Dorset, Devon, Wiltshire, the West of England and the Isle of Wight.
Sovereign also deliver one of the largest affordable housing programmes, with ambitious plans to provide nearly 2,000 new homes a year, with around 90% affordable.