GB Social Housing tapped its £2 billion bond programme with a £16.5m issue on November 14, funding two new borrowers in Milnbank and Bro Myrddin Housing Association (£8m).

Drew McPhail, finance manager at Milnbank Housing Association, told Scottish Housing News the deal was a long time in the making.

He said: “Milnbank Housing Association has secured and completed a new and very competitive £10m funding facility with GB Social Housing on Wednesday 14th November. The facility is written over 20 years and attracted strong support from the capital markets. This allowed the Association to redeem and re-structure part of its existing short-term debt whilst also generating considerable headroom for further facilities if and when required.

“The Association also achieved significant security release from its existing structure to further strengthen it’s free security position. This places the Association on a strong financial footing to cope with any future shocks and risks that may arise across the sector.

“The funding will see the Association continue to invest heavily in its stock and the area in general to the benefit of tenants, owners, other customers and the local community alike.”

GB Social Housing director, Gerhard Oberholzer, who supported the Association throughout the process, said: “The tap issue closed at an effective rate of 3.898% (2038 Gilt yield at 1.868% and spread at 2.03%). There was active support for the issue in the capital markets in spite of growing volatility, now primarily driven by Brexit uncertainty.

“The board of GB Social Housing strongly supported funding Milnbank HA and Bro Myrddin HA, two associations with clear focus on providing quality social housing in their respective catchment areas and managed by experienced and stable management teams.”