MORhomes taps bond for £13M loan to Hexagon amid credit-rating pressure
What's the deal? MORhomes PLC, a specialist bond aggregator financing UK housing associations, has issued £13 million of 3.40% secured notes due 2038 to fund a loan to Hexagon Housing AssociationDealroom has a profile for this one. Try Dealroom →. The notes, priced on November 4, 2026, consolidate into an existing series under MORhomes' £5 billion Secured Euro Medium Term Note Programme.
How it works: MORhomes pools demand from smaller housing associations that often lack direct capital-market access, then on-lends the bond proceeds. Tapping an existing series rather than issuing a new tranche cuts structuring costs and keeps liquidity in the established notes.
Why now? The tap arrives as S&PDealroom has a profile for this one. Try Dealroom → has revised Hexagon's outlook to negative, affirming its BBB+ rating but citing delayed access to committed credit and tighter liquidity. The agency expected a separate £10 million facility in November and a revolving credit facility by fiscal 2027.
By the numbers: The issuance lifts the 3.40% series, first sold in February 2019, to £464.9 million outstanding across 13 tap issuances over seven years. The fixed coupon gives Hexagon long-term cost certainty on secured debt maturing in 2038.
The signal: The deal reflects continued reliance on bond aggregators to channel long-term capital to the social-housing sector — Raven Housing TrustDealroom has a profile for this one. Try Dealroom → secured a £100 million THFCDealroom has a profile for this one. Try Dealroom →/Blend package in October. For Hexagon, the financing provides liquidity support amid credit uncertainty, though it does not resolve the rating concern.
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Image credit: Alex Pepperhill
