The Guinness Partnership has issued a £400m bond at a coupon of 2% following a single day of marketing.
The housing association issued £250m to investors and retained £150m. It said the 35-year bond was significantly oversubscribed.
It will use the finance to develop a target of 5,500 homes by 2024, and 12,500 over the next 10 years.
Group finance director Phil Day said: “The very strong demand for our bond and the final spread over gilts of 145 basis points that was achieved shows that the capital markets remain supportive of housing providers.
“We increased the size of our bond during execution, which was reflective of the strength of the order book.”
The Guinness Partnership, which owns more than 65,000 homes across England, is rated A2 (stable) and A- (stable) by credit rating agencies Moody’s and Standard & Poor’s respectively.
Barclays, MUFG and Natwest Markets acted as joint bookrunners on the transaction.
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