Northern Ireland

Radius Housing: Association borrows £105m on bond market

Houses under construction Image copyright PA WIRE

Northern Ireland's largest housing association has borrowed £105m on the bond market to finance its plans for new social and affordable housing.

The Radius Housing borrowing deal, known as a private placement, is the first of its kind for a NI association.

A private placement is a means of raising finance via investors with long term repayments

They are increasingly being used by UK housing associations as an alternative to bank borrowing.

John McLean, chief executive of Radius Housing, said: "We are delighted by the confidence shown by international investors in Radius Housing's development ambitions and the strength of our governance.

"North American and UK investors responded positively to our vision and plans for growth through the construction of new social and affordable housing across Northern Ireland."

Housing associations traditionally finance their activities in two ways: government grants and private sector borrowing.

Radius said the bond issue gives a longer repayment term at competitive rates.

Radius Housing Association was formed in 2017 following the merger of Fold and Helm housing associations.

It has 13,000 homes under management and an annual turnover of £90m.