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SNG issues £400mn new sustainable bond to fund investment

The funding, raised under SNG’s sustainable finance framework, will support the organisation’s aim to build 25,000 homes over the next decade.
Peter Benz head shot_ Oct 23 Martin Cleveland

SNG (Sovereign Network Group), has raised £400mn in its first public bond issue post-merger. The funding, raised under SNG’s sustainable finance framework, will support the organisation’s strategic aim to build 25,000 homes over the next ten years, at a time when new affordable homes are critically needed. SNG develops homes in accordance with its sector-leading Homes and Place Standard, which charts a path to net zero by 2050.

The issuance attracted a very strong orderbook and was nearly four times oversubscribed. The 33-year tenor makes it the first public long-dated bond issued in the sector since November 2022 and the longest dated Sterling transaction since July 2021. The bond was priced at G+108 bps, one of the tightest spreads recently achieved in the sector with an all-in rate of 5.603 per cent.

Peter Benz, Chief Financial Officer at SNG, welcomed the new investment saying: “We are very happy with the outcome of this transaction. The strength of interest we received demonstrates the level of investor confidence in our plans and the continuing attraction of the affordable housing sector as a competitive investment destination.“

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