Assured Guaranty Wraps Notes Issuance for Places for People

Assured Guaranty (Europe) plc (AGE)* announced that it has guaranteed principal and interest payments on £75 million of notes issued by Places for People Treasury Plc. The unsecured note issuance is to refinance existing facilities and for general corporate purposes.

The 20-year fixed-rate notes were issued on 17^th October 2018 and took advantage of low long-term rates and were issued as a private placement to a group of South Korean investors, of which DB Life Insurance Co. Ltd was the largest single investor. As a result of the financial guarantee provided by AGE, the investors were able to benefit from AGE’s AA by S&P Global Ratings.

Places for People is one of the largest placemaking and regeneration companies in the UK, with an underlying rating of A-/Baa1 from S&P and Moody’s respectively. The Group owns or manages over 198,000 homes, operates over 120 leisure facilities and provides services to more than 500,000 people. It is committed to creating places that work for everyone.

Dominic Nathan, Managing Director, AGE, commented:

“This is a significant transaction for AGE in the UK social housing market, and our first new wrapped corporate issuance in this sector for a number of years. We are delighted to have marked our return by guaranteeing a debt issuance for one of the largest and most recognised housing associations in the market. We expect to replicate our success on this transaction with other housing associations that seek to take advantage of our long-term and cost-effective funding solution.”

Nick Proud, Chief Executive, AGE, commented:

"The transaction provides evidence of AGE’s ability to innovate and add value in new markets. We were delighted to have accessed the Asian investor market for this UK issuance and to provide value to these investors with our AA wrap. This ultimately opens up a new universe of potential investors for issuers in this market which historically has been financed by the banking industry and UK institutional investors.”

AGE guarantees timely payment of scheduled principal and interest to bondholders, throughout the life of the bonds, in accordance with the terms of its financial guarantee.

Assured Guaranty’s legal advisers on the deal were Clifford Chance LLP and Pinsent Masons LLP provided legal advice to the investors.

Places for People was advised by Allen & Overy LLP.

IMPORTANT NOTICE

All of the securities having been sold, this announcement is for information purposes only.