December 7, 2018
Karbon Homes has issued £150 million in newbonds to support the delivery of its Strong Foundations Strategy.
The strategy outlines a number of key aims, including plans to expand its build programme to develop at least 500 high quality new homes every year.
The organisation provides a range of ways for customers to access homes: from homes to buy and shared ownership, to affordable housing, social housing and supported and specialised housing.
Karbon Homes also remains committed to continued investment in its almost 30,000 existing homes across the North East and Yorkshire, and has committed £180m in planned maintenance over the next ten years to ensure they are fit for the future.
Its main business driver is to deliver excellent customer service and engaging and listening to customers to shape its products and services.
Karbon Homes wants to shape strong, sustainable places by prioritising safety and security, investing in community projects, and working in partnership to address key customer issues such as employability and financial inclusion.
The foundations to deliver this strategy have been firmly laid following a recent G1/V1 rating from the Regulator of Social Housing – the highest possible score for governance and viability, and a strong A+ credit rating from Standard & Poor’s.
The housing provider has now issued a bond so it can have an even greater positive impact on its customers, communities and the region. Following recent roadshows to investors, Karbon Homes raised £150m of new bonds, with a further £100m retained for later sale.
The bond oversubscription of five times at final pricing is thought to be one of the highest seen for a public housing association bond in the past five years. The bond finally priced atGilts+153bps.
Investors were attracted by the strength of Karbon Homes’ brand, its leadership, strategy and approach to risk management. They were also impressed with the strength of the Karbon story, from its deep roots within the local communities of the North East of England, to the position it now occupies following a number of successfully-managed mergers in recent years.
Paul Fiddaman, chief executive of Karbon Homes (pictured), says: “We are extremely proud of our five year strategy, which is driven by the needs of our customers.
“As a profit for purpose business, we invest any surplus into building, improving and maintaining homes, and providing sustainable outcomes for customers and places. Combining a sound business head with a strong social heart, this bond ensures we have the financial strength to deliver our strategy, so we can build strong foundations for more people.”
Sarah Glendinning, regional director of theCBI, adds: “It is really encouraging to see such ambitious aims from one of our region’s biggest businesses.
“Karbon Homes’ commitment to address the housing crisis through continued investment in existing homes and the delivery of 500 new homes a year is impressive. This is great news for not only the North East economy but also the wider positive impact on Karbon Homes’ supply chain. “The organisation’s continued focus on delivering an excellent customer experience is also clear, and by seeking regular and genuine customer insight to inform and shape their products, services and activity, they will be able to deliver for their communities.
“With these strong foundations, Karbon Homes has a bright future ahead.”