Tuntum Housing Association

Tuntum Housing secures £42.5m in bond funding

Tuntum Housing Association has secured a £42.5m unlisted bond with a UK insurer and a UK pension fund.

The debt transaction, arranged by TradeRisks Limited, has two tranches, £32.5m spot tranche with a 2.74% coupon and a £10m one-year deferred tranche with a 2.85% coupon.

Both tranches will be repaid in three equal instalments in 2045, 2049 and 2053.

The facility has an asset cover which steps up one year following the first drawdown.

The company will use the proceeds to develop affordable homes and refinance some of its existing bank facilities.

Junior Hemans, chair at Tuntum Housing Association, said: “This is a hugely significant step for Tuntum Housing Association which will enable us to refinance some of our existing loans and provide us with the funds for more new homes.” 

Antoine Pesenti, managing director at TradeRisks, stated that the transaction showed smaller locally-focused housing associations could pursue capital from large institutional investors.

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