Affordable Housing Finance is hoping to raise £194m through a public bond issue to increase lending for affordable housing development schemes.
The bond issue will add to the £406.9m issued previously at a 3.8% coupon due in 2042 and 2044. The extra £109m will have the same duration and coupon.
AHF won the original mandate to supply government-backed finance for the affordable housing scheme until March 2015. This has since been extended until March 2016.
Initially AHF obtained finance through a loan from the European Investment Bank but subsequent capital was mandated to be raised by bonds with a credit rating backed by the government.
The affordable housing scheme was initially allocated a total of £3.5bn in government-backed lending when formed in early 2013.
The scheme aims to offer development finance for affordable housing at cheaper rates than banks can offer.
