L&Q bond issue attracts £1 billion in subscriptions

L&Q today raised £300 million in private funding through a debut bond issue to help fund its future development programme.

The issue was three-and-a-half times over-subscribed within an hour of hitting the markets, making it the most popular bond issue from the housing association sector in recent times.

L&Q was seeking the £300 million of private funding to support development plans for 10,000 homes over the next five years.

L&Q’s Group Director of Finance, Waqar Ahmed said: “We are delighted that investors have shown such positive interest in the issue. The additional investment ensures that we will continue to lead the way in building much-needed homes and creating desirable neighbourhoods in London and the South East.

“In all it means L&Q starts 2010 in a very good position. Our efficient business and management procedures, strong governance, low arrears and consistent appearance in the Sunday Times Top 100 employers list all point to a success story that investors have been willing to back.”

The issue was launched in conjunction with Barclays Capital, Royal Bank of Scotland and Goldman Sachs as joint bookrunners. The debt will effectively cost 5.42% and is repayable in 30 years.

For more detail see the press release ‘L&Q debut bond issue attracts over £1billion in subscriptions’.