Bond issue funding nearly 200 affordable new homes in Merthyr

A South Wales housing association is to build nearly 200 new homes after raising bond finance.

Merthyr Tydfil Housing Association (MTHA), which manages nearly 1,200 homes in the borough of|Merthyr, said the £9m will restructure existing bank debt and help finance the new homes that will be delivered by 2025.

The bond finance, the result of a review of the social landlord’s treasury activities, was secured on its behalf by The Housing Finance Corporation (THFC), which issues long-term bonds for UK housing associations.

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The bonds have a interest rate of 2.10% with a 22-year term,

Chief executive of MTHA Karen Courts, said: “The board and executive are delighted to have successfully delivered on the treasury strategy with such excellent outcomes, enabling us to deliver more affordable homes within the borough of Merthyr Tydfil. We are pleased to welcome THFC as a new funding partner, and appreciative also of the continued support from our existing bank lenders.

Barclays Bank is maintaining its support as MTHA’s largest bank lender.

Relationship director with Barclays, Richard Whittaker, said: “We are pleased to be able to continue supporting MTHA through the next phase of its refinancing strategy, with the continuation of term loan and revolving credit facilities.

“This deal further underlines our ongoing commitment to the UK housing sector, and we look forward to working closely with the management team to help this ambitious housing association achieve its objectives over the coming years.”

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