Great Places bond issue successful

Manchester-based Great Places Housing Group has completed a bond issue raising £200m of which £150m will be drawn down immediately and the remaining £50m over the next two years.

Investors will earn 4.81% from the bonds, which were arranged by RBC Capital Markets, Royal Bank of Scotland and Santander GBM.

Great Places manages 16,000 homes and the funds will be used to pay for future development. A three-day invest,ment roadshow in Manchester, Edinburgh and London led to the issue being oversubscribed. The credit spread achieved, the difference between the debts bought and sold, was 170 basis points, or 1.7%.

Stephen Porter, chief executive, said: "This is fantastic news and demonstrates the financial strength of our business and our excellent reputation. It will allow us to continue to build much needed homes and I am delighted by the response of investors."

Earlier this year Great Places received £40m from the Homes & Communities Agency towards the cost of building 1,750 new homes.