Bromford Flagship has secured its first private placement, raising £75 million from investors to help fund its strategic objectives.

The 80,000 home landlord has successfully launched its first capital market transaction since being formed through the merger of Bromford and Flagship housing associations last month. The funding was issued under Bromford Flagship’s Sustainable Finance Framework which was updated following the merger. Strong bids were submitted from a mix of both new and existing, domestic and international investors. A combination of existing and new investors were chosen from those who submitted bids.

The £75 million instrument has a term of 15 years and will support Bromford Flagship’s ambitions to build 2,000 homes in each of the next 30 years and to continue to invest in improving the energy efficiency of its existing homes.

Bromford Flagship Director of Treasury Matthew Rose said: “Despite the challenges posed by rising costs and interest rates we are in an extremely robust position financially which is allowing us to continue to raise funds to invest in both existing and new homes. We were delighted to see just how much appetite there was from current and potential investors in Bromford Flagship so soon after the merger was completed. As one of the country’s biggest housing providers we will continue to deliver new affordable homes to tackle the housing shortage and will return to the market to fund our strategic goals later in the year.”

NatWest Markets acted as the placement agent on the deal, with treasury advice provided by Newbridge Advisors LLP with Devonshires and Pinsent Masons providing legal advice to Bromford Flagship and investors respectively.

Dominic Brindley, Director Financing & Risk Solutions at NatWest said: “NatWest’s in-depth understanding of the global private placement investor community ensured we were able to reach out to targeted accounts in an efficient process. We saw significant oversubscription and delivered a documentation package and terms that were very competitive which built on Bromford’s existing presence in the market. We were delighted to successfully conclude the inaugural fundraising for Bromford Flagship Group as a combined entity.”

Grant Vaughan, Director at Newbridge Advisors added: “Achieving such a strong result so soon after completing the merger is testament to Bromford Flagship’s strong management, financial resilience and prudent treasury strategy. We are delighted to have supported the team on this transaction which is a key funding milestone for Bromford Flagship to support their delivery of new homes.”

Earlier this month Bromford Flagship had its A+ rating with S&P and A2 rating with Moody’s reaffirmed.