Sovereign Housing
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Our growth and financial resilience has resulted in a strong balance sheet and business plan, giving us choices in how we provide more homes for people in need.

Our financial position

Sovereign is one of the largest housing associations in the country, managing more than 58,000 homes across the south and south west of England and the Isle of Wight.

Our strategy is to continue to grow, staying financially strong through good governance and performance management so we can invest more in the things that matter - building more homes and making better places. 

To achieve our commercial and social goals, we need a diverse range of funding which is cost-effectively structured to provide the necessary investment funds and maintain liquidity. This includes an appropriate mix of bond and bank finance.

Our ratings and assessments

Sovereign has some of the strongest ratings in the sector. We were awarded the highest ratings possible by the Regulator for Social Housing for both governance and viability following in an In-Depth Assessment in April 2018.


Sovereign's rating from Moody's is 

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Standard & Poor's

Sovereign's rating from Standard & Poor's is

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Regulator of Social Housing

Sovereign's rating from the Regulator of social housing is

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Sovereign Housing Capital plc, a wholly owned subsidiary of the Registered Provider (RP) Sovereign Housing Association Ltd has issued Medium Term Notes (MTN) as follows:

Date issued  Maturity Date

 Issued Amount


 Interest paid


 2009  2039  £175m  5.705%  Semi-annual  10 September / 10 March
 2012  2043  £250m  4.768%  Semi-annual  1 June / 1 December
 2019  2048  £375m  2.375%  Semi-annual  4 May / 4 November

Sovereign has an experienced treasury function, which manages the Group’s funding requirements and financial risks in line with the treasury policies and procedures approved and overseen by the Treasury Committee and reported to the Board.

Treasury policy and financial risk management

The management of treasury is key to ensuring that sufficient facilities are in place to support our strategy, which incorporates an ambitious development programme.

Our Treasury Management Policy sets the framework for managing the treasury activities and encompasses strong governance procedures. The Board delegates responsibility for the approval and regular review of the policy to the Treasury Committee.

Treasury strategy is reviewed on an ongoing basis and a documented Treasury Plan is prepared at least annually and signed off by the Treasury Committee.

Capital structure

Sovereign is financed by a combination of capital market bonds, long-term bank debt, Social Housing Grant funding, and retained surplus. The bank debt is provided by a core group of lending banks together with the European Investment Bank (EIB).

Predominantly all of Sovereign’s bonds and bank debt is secured debt, with security provided by way of charges over housing properties. At 31 March 2019, there were more than 16,000 uncharged properties, with a value in excess of £1.0bn, available to be pledged as security. Accordingly, considerable secured borrowing capacity remains available to support ongoing development.

In 2019, Sovereign agreed a £250m unsecured (3+1+1) revolving credit facility with a consortium of five banks to provide Sovereign with sufficient liquidity and flexibility as to when it should best approach the debt capital markets.

We are confident that our financial position makes Sovereign a strong investment proposition and that, in the absence of a material change in market sentiment, further funding to support a continuing development programme will be available at competitive rates.


Sovereign has a minimum liquidity policy that requires cash and confirmed finance facilities to be in place to cover both committed and approved financing requirements for at least the following 18 months.

Interest rates

Sovereign’s own-name bonds bear interest at fixed rates, as does our various borrowing through The Housing Finance Corporation and Affordable Housing Finance and the initial drawdowns from the European Investment Bank facility. Bank debt is at a combination of fixed and variable rates. Interest rate exposure in relation to the variable rate bank debt is managed through the use of stand-alone interest rate derivatives.

Sovereign’s annual business plan is stress-tested to ensure it is not unduly exposed to risks associated with interest rate movements and the interest rate hedging strategy is adjusted as considered appropriate.

Counterparty risk

Counterparty risk exists where Sovereign Group can suffer financial loss through default or non-performance by financial institutions.  Exposures are managed through the Treasury policy which limits the value that can be placed with each approved counterparty to minimise the risk of loss.  The counterparties are limited to relationship banks who have a minimum long term credit rating defined in the Treasury Policy assigned by Moody’s / S&P or Fitch.


Annual report and financial accounts

If you would like to view our accounts and reports from previous years, these can be found on our Corporate publications page.

You can also read more about our operational and financial performance quarter by quarter.

Annual Funders' day 

We hold a Funder's Day in October / November where current and potential investors can meet our Executive Board and hear about our performance and future strategy.

Get in touch 

If you want to get in touch to talk about our funding strategy, or to find out more about our annual Funders' Day, please contact Graeme Gilbert, our Treasury Director.