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A2D Funding Plc announces £150m funds raised via retail bond issuance

A2Dominion at the London Stock Exchange A2Dominion opened the London Stock Exchange on 23 October 2013

23-Oct-2013

A2D Funding has raised £150m via its recent issuance of AA- rated retail-eligible bonds.

The 4.75% unsecured sterling bonds, due 2022, are guaranteed by A2Dominion Housing Group Limited (A2Dominion), one of the largest social housing providers in London and the south east of England.

The proceeds of the issue will be on lent to members of the A2Dominion Group, which comprises A2Dominion and its subsidiaries.

Following the launch of the retail bond, A2Dominion was invited to open the London Stock Exchange on 23 October, with A2Dominion Board members, the Group’s Executive Management Team, staff and business partners in attendance.

Cash from the bond issue, the offer period for which closed early due to high demand, will be used to fund A2Dominion's development programme and to further grow its diverse portfolio, which includes social housing, student accommodation, properties let on the open market, shared ownership and homes for sale.

Canaccord Genuity Limited and Lloyds Bank plc served as Joint Lead Managers.

Dean Tufts, A2Dominion’s Executive Director (Finance & Strategy), said: “We saw a high level of demand for our bonds, which we believe reflects our sound business strategy and is a vote of confidence from our investors. The retail bonds will diversify our sources of funding and assist us to continue developing much-needed, high quality housing in the south east.”

Adrian Bell, Head of Debt Markets UK at Canaccord Genuity, added: “We were delighted by the breadth of demand we received for the deal covering institutional and ethical investors as well as traditional retail buyers in the bond market.”

Tony Oakley, senior relationship director from Lloyds Bank Commercial Banking’s social housing team, said: “Social housing funding has developed in recent years and housing associations are now ready to tap into retail bond markets to support their growth. Bond issues by other providers demonstrated there is considerable appetite from the markets to invest in housing associations with attractive and growing portfolios, something A2Dominion offers investors with a development plan including a goal of building more than 1,000 new homes a year.”

View the video from the London Stock Exchange market open event.

[Ends]

Contacts

For further information, please contact Quill PR:

Emma Wallis Tom Climie
E: emma@quillpr.com E: tom@quillpr.com
T: 020 7466 5053 T: 020 7466 5052

Notes to Editors

The A2Dominion Group is one of the country’s leading providers of high quality housing and services. With over 34,000 homes across London and the south east of England and thousands more in the development pipeline, it offers a wide range of homes for rent and sale. From affordable housing and market rate rentals, to specialist accommodation for key workers, students and vulnerable people, the A2Dominion Group caters for all needs. Through the A2Dominion New Homes brand it provides high quality homes for private sale, shared ownership and investment.

Across all its activities A2Dominion Group’s vision is to improve people’s lives through quality homes and services. The Group does this by reinvesting surpluses into developing more affordable housing and improving existing properties and services.

A2Dominion is a member of the g15, a group of London’s 15 largest housing associations, providing homes for 1 in 10 Londoners and one quarter of all new building, working to solve the housing crisis by delivering good quality, affordable homes of all types.

This press release is addressed purely to people who receive this communication in the course of a business which involves the dissemination through a publication of information concerning controlled activities in accordance with Section 47 of the FSMA 2000 (Financial Promotion) Order 2005.

The information contained herein may only be released, published or distributed in the United Kingdom, Jersey, Isle of Man and Bailiwick of Guernsey ("Guernsey") in accordance with applicable regulatory requirements. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, the Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this document. The bonds referred to above may only be sold in Jersey in compliance with the provisions of the Control of Borrowing (Jersey) Order 1958 and any circulation in Jersey of any offer for subscription, sale or exchange of the bonds may only be made by a person or persons authorised to conduct investment business under the Financial Services (Jersey) Law 1998, as amended. Any offer for subscription, sale or exchange of the bonds within the Isle of Man must be made (i) by an Isle of Man financial services licence holder licensed under section 7 of the Isle of Man Financial Services Act 2008 to do so or (ii) in accordance with any relevant exclusion or exemption therefrom. Any promotion, offer for subscription, sale or exchange of the bonds in or from within Guernsey or otherwise directed at Guernsey residents may only be made in accordance with the Protection of Investors (Bailiwick of Guernsey) Law, 1987 as amended, the rules, regulations or guidance made or issued thereunder or any relevant exemptions therefrom.

This announcement is an advertisement and not a prospectus for the purposes of EU Directive 2003/71/EC (as amended) (the "Directive") and/or Part VI of the Financial Services and Markets Act 2000. A prospectus dated 1 October 2013 (the “Prospectus”) and a sizing announcement dated 3 October 2013 (the “Sizing Announcement”) constitutes the full information published or otherwise available in relation to the offer of the Bonds by A2D Funding plc and investors should not subscribe for any Bonds referred to in this announcement except on the basis of the information contained or incorporated in the Prospectus or the Sizing Announcement. Investors may obtain copies of the Prospectus and the Sizing Announcement on the website of the Regulatory News Service operated by the London Stock Exchange.

The offering and the distribution of this announcement and other information in connection with the offer in certain jurisdictions may be restricted by law and persons into whose possession this announcement or any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase. Any purchase of Bonds should only be made on the basis of the information contained in the Prospectus and the Sizing Announcement, available as described above.

The Bonds have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and include Bonds in bearer form that are subject to certain U.S. tax law requirements. Subject to certain exceptions, the Bonds may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons. The Bonds are being offered and sold outside of the United States in reliance on Regulation S of the Securities Act. There will be no public offering in the United States.

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This page was printed from A2Dominion Web site at http://www.a2dominion.co.uk/