Blackstone-backed Sage Housing raises £280m through first ESG bond

Sage Housing has raised £280m through its first sustainable, social and green bond as part of a bid to deliver 20,000 new energy efficient homes.

The fast-growing firm, backed by US private equity giant Blackstone, said it raised the funds through a new social housing securitisation and by gaining sustainable bond, social bond and green bond status, which is overseen by the International Capital Market Association (ICMA).

Sage joins a growing number of registered providers who have gone to the bond markets to attract ESG-hungry investors, as the theme continues to influence investment decisions.

The move follows the £220m that Sage raised in October last year, when it made its foray to the bond market. The financing last year was secured over 1,609 properties.

The provider, which was acquired by Blackstone in 2018, said it is on target to deliver 5,000 affordable homes in 2021 and has a pipeline of more than 20,000 homes.

John Goodey, Sage’s chief financial officer, said: “This successful fund raise further highlights our commitment to building a business that has ESG at its core, while providing thousands of affordable, sustainable homes across England.”

A report in July said that for-profit registered providers are expected to spend around £23bn on developing up to 130,000 homes over the next five years.

Source: Inside Housing