Places for People is a UK-based, not-for-profit company that owns or manages more than 180,000 homes. The company says its “placemaking approach” involves considering the infrastructure and services supporting the houses it builds.

Its visit to the Australian debt market netted A$150 million (US$119.2 million) of five-year, fixed-rate bonds with 86 per cent participation from local investors. National Australia Bank (NAB) was arranger and sole bookrunner on the transaction.

The issuer credits NAB for bringing the value of bond issuance in Australia to its attention. “We have been working with NAB for many years in both the sterling and US private-placement markets and it was NAB’s recommendation to try the Australian market. It was a great call,” says Matt Cooper, tax and treasury director at Places for People in Preston.

He adds: “NAB handled the process fantastically and explained the slight nuances between the UK and Australian markets. Investors were engaged and interested in our credit, and our expectations for pricing and size were exceeded.”

The evolution of an Australian environmental, social and governance (ESG)-informed debt market provided a boost to Places for People’s bond deal, though Cooper says it was not the only consideration.

He argues that although the Kangaroo deal was not an ESG-specific trade, the fact that the Australian market is focused on this area was a positive factor given the entire Places for People business is focused on social responsibility. It certainly contributed to a positive pricing outcome.

“We have a large, liquid sterling bond which acts as a benchmark and the pricing on the Kangaroo bond compared very favourably with this,” Cooper adds. “We are very keen on diversification and getting a range of investors interested in investing in Places for People.