A new borrowing experience

All MORhomes bonds are Social Bonds in accordance with the Social Bond Principles 2018

Overcoming global development challenges and advancing objectives for public good require significant investment in projects that bring about positive social impact. Many of these investments are expected to be financed by debt instruments including bonds. Committing a section of the bond market to the financing of projects with expected positive social outcomes will channel existing and new pools of liquidity to address global challenges such as those exemplified in the Sustainable Development Goals (SDGs).

The UK Prime Minister has identified the current status of the housing market as one of the greatest barriers to progress in Britain today, noting the challenges of low housing supply and unaffordability.

The proposed UK Government response to the current situation includes:

Increasing availability of suitable land for construction;
Increasing the pace of housing construction;
Diversification of the housing market, encouraging housing associations and local authorities to build more, and working to attract new investors into residential development; and,
Taking steps to assist people now, improving safeguards in the private rented sector and doing more to prevent homelessness and help households currently priced out of the market.

Increasing housing is a top priority for the UK Government, and Housing Associations play a key role in solving the current housing shortage via the following:

Major source of capital for investment;
Earnings reinvested in additional low cost housing;
Rents at a substantial discount to the open market; and,
Borrowing held off the Government Balance sheet.

MORhomes believes that its business model – assisting providers of affordable housing to raise capital – will resonate with investors interested in allocation of capital toward positive social outcomes, and has therefore decided to issue Social Bonds in accordance with the Social Bond Principles 2018.

Documentation relating to the social bond framework can be found by clicking on the links below:

Social Bond Framework