Allen & Overy said today the GBP150 million retail-eligible bond issue from housing group A2Dominion, the fastest-selling in the history of the Order book for Retail Bonds (ORB), illustrates the very real value in corporates diversifying their funding mix. The bond issue was announced and closed in just one day.

The 4.50% unsecured sterling bonds are due 2026, the longest maturity in the retail bond market to date. They were raised by A2D Funding II plc and are guaranteed by A2Dominion Housing Group Limited, one of the largest social housing providers in London and the south east of England. Proceeds from what is the group’s second retail-eligible bond issue will be used to fund A2Dominion’s development programme and expand its portfolio, which includes social housing, private sale and rent, shared ownership and student accommodation.

Capital markets partner Geoff Fuller commented: “The unprecedented level of demand amongst investors for this bond highlights the benefits for corporates who seek out alternative forms of credit. We are seeing increasing numbers of deals that echo this one as the ORB platform offers significant flexibility in terms of maturity, size and structure to businesses aiming to raise debt finance, and we anticipate that this trend will continue.”

Allen & Overy advised Canaccord Genuity Limited and Lloyds Bank plc as joint lead managers on the transaction. The team was led by capital markets partner Geoff Fuller assisted by counsel Beth Collett, both of whom advised on A2Dominion’s debut retail-eligible bond issue in 2013. Allen & Overy’s social housing practice continues to go from strength to strength, advising on 65 out of 70 listed bond issues by social housing providers since 2008.