Chicago, July 8 – Church Commissioners for England priced its first bond issue on Friday, a two-part transaction (Aa1) that has one tranche marked as sustainable and a longer dated tranche as conventional, according to a press release.
The £250 million of 10-year sustainable bonds have a 3.25% interest rate, and the £300 million 30-year bonds priced with a 3.625% rate.
Price guidance on the 10-year series was 125 basis points to the U.K. Treasury, and guidance for the 30-year part was in the 130 bps area to the U.K. Treasury.
Proceeds will be invested on a long-term basis according to the Church Commissioners’ investment approach, with the proceeds of the sustainability bond used to support existing and future eligible sustainable projects as set out in the new established sustainable financing framework.
Bank of America, JPMorgan and Morgan Stanley acted as joint bookrunners on the bond issue with Bank of America leading on documentation.
JPMorgan acted as credit ratings adviser and Morgan Stanley acted as sustainability structuring bank and leading on billing and delivery.
Church Commissioners was advised by Clifford Chance (legal advice) and Rothschild & Co. (financial advice) and the joint bookrunners by Linklaters (legal advice).
The bonds will be listed on the London Stock Exchange.
Based in London, the proposed issuer manages the property assets of the Church of England. The Commissioners manages a £10.1 billion investment fund.
| Issuer: | Church Commissioners for England
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| Amount: | £550 million
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| Issue: | Bonds
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| Bookrunners: | Bank of America, JPMorgan and Morgan Stanley
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| Counsel to issuer: | Clifford Chance
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| Counsel to underwriters: | Linklaters
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| Trade date: | July 8
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| Rating: | Moody’s: Aa1
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| Distribution: | Regulation S
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|
|
| 10-year bonds
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| Amount: | £250 million
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| Issue: | Sustainable bonds
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| Maturity: | July 14, 2032
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| Coupon: | 3.25%
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| Price talk: | U.K. Treasury plus 125 bps
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|
|
| 30-year bonds
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| Amount: | £300 million
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| Issue: | Bonds
|
| Maturity: | July 14, 2052
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| Coupon: | 3.625%
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| Price talk: | U.K. Treasury plus 130 bps
|
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