Bromford housing association lands £50m placement

Bromford, the Wolverhampton-based housing association, has boosted its coffers with a new £50m private placement from a single UK investor.

The group, which turned over more than £250m last year and owns and operates 44,000 homes across the Midlands and the South-West, said the deal was “covenant light” and featured no asset gearing.

The identity of the investor was not revealed.

Bromford said the £50m deal, secured at an interest rate of 2.26% with a 14-year maturity, took the group’s total funding since completing mergers in the past 12 months with Merlin and Severn Vale housing associations to £550m, along with a recent renegotiation of its £200m debt.

The latest financial backing would be used to towards delivering Bromford’s plans to build a further 13,000 homes by 2028, the group added.

Imran Mubeen, the housing association’s treasury boss, said the group had seen a high volume of investor interest after its last annual financial update.

“It is particularly pleasing to retain the highest level of investor confidence and interest after our recent Moody’s regrade as the key strengths of our business remain apparent.

“We will continue to proactively engage the investor community and look forward to strengthening existing relationships and forming new ones,” Mubeen added.