Together completes £500m bond offer

Together has announced the issuance of £500m in six-year bonds at a coupon of 5.25%.

A spokesman for the company said that the lender increased the fundraising by £50m from its initial offering, following “significant demand” from investors.

According to the lender, the proceeds from the issuance will be used to redeem £350m of existing bonds due to mature in 2024 and to support further growth in lending.

Citigroup and Goldman Sachs International acted as the joint bookrunners for the issuance of the bonds.

Marc Goldberg, commercial CEO at Together said that the issuance “shows how strong Together is thought of in the marketplace” and remains in a “strong position” to support current commercial and personal finance customers and new borrowers, despite the challenges posed by a third national lockdown.

"We are delighted with the success of the transaction, our second fundraising during the pandemic,” he added.

“The new issuance, which is our largest bond to date, was upsized by £50m on the back of strong investor support and provides additional headroom as we continue to shape our business for an exciting future.”

Pete Ball, personal finance CEO at Together, said that the latest bond offer followed the success of the group’s fourth and largest public residential mortgage-backed securitisation of £370m in July.

He commented: “We continue to diversify and add depth of maturity to our funding platform to support our lending ambitions. 

“The transaction received strong demand from high quality investors and was many times over-subscribed."

Leave a comment