Notting Hill Genesis priced a £250m 10-year secured sustainable bond yesterday, 25 March 2025, to support continued investment in existing homes for our 130,000 residents and maintain a 3,000 home new-build programme over the next five years.
The bond, issued under our £2bn Euro Medium-Term Note (EMTN) programme, is aligned to our sustainability finance framework, which embeds environmental, social and governance considerations into our strategy.
Chief financial officer Mark Smith said: “We are delighted to have secured this bond issue and for the positive response from investors, which reflects the clear plan we have in place.
“Raising additional funds at competitive rates through bond issues is part of our overall treasury management strategy, which enables us to continue to deliver on our mission of working better together for residents.
“Last year, we committed to spending £770m over the next 10 years on improvements to our existing homes, as well as £173m on our building safety programme to ensure our buildings meet regulatory requirements and that all residents feel safe in their homes. We also have plans to build 3,000 new homes over the next five years.
“The bond issue will help us deliver that plan, allowing us to continue our long tradition of providing homes for Londoners, whatever their personal circumstances, and support the government’s target of delivering 1.5 million new homes over this parliament.”
The £250m 10-year bond was priced on Tuesday 25 March 2025 following a day of marketing, with a coupon of 6% and a margin of 130 basis points – or 1.3% - above the government cost of borrowing, known as gilts. We received strong demand from our investor base with the issue being more than two times over-subscribed.
Notting Hill Genesis remains a financially stable organisation, with a regulatory rating of V2 for viability, solid credit agency ratings and access to substantial liquidity. As at 30 September 2024, group debt was £3,599.9m net of capital loan costs and loan premia and undrawn facilities were £725.0m. We are rated A- (negative) by S&P and A- (stable) by Fitch.
At the same time, we continue to make progress against our three-year Better Together corporate strategy, which is also laying the foundations for restoring compliance against the regulator’s governance and consumer standards.
Our joint active bookrunners on the issuance were HSBC and RBC Capital Markets.
The sustainable finance framework and second party opinion can be accessed directly on our investors page.
