Unsecured bond issue underlines strength of Coventry BS

Coventry Building Society has secured £400 million in long term funding from the financial markets in a deal which shows the continued strength of the UK's third largest building society.

The 12 year bond was heavily oversubscribed as city investors gave Coventry Building Society a significant vote of confidence.  The deal is the second unsecured public issue by Coventry in the last 12 months.

Rob Green, Coventry Building Society's Finance Director, said. "I am delighted that there was such good demand for this bond.  It shows that investors recognise the strength of the Coventry's financial position and the high quality of our assets."

The Society, which has remained ‘A' rated by both Fitch (A) and Moody's (A3) throughout the credit crisis, reported excellent results for the first half of 2010. Profit before tax increased to £43.5 million (2009 first half year: £36.2 million), retail savings increased by £1.7 billion fully funding gross mortgage lending of £1.6 billion, and efficiency, judged by a cost to mean asset ratio of only 0.37%, was the best of any UK building society.

Rob Green continued.  "Our strong asset quality and ongoing profitability clearly tells investors that Coventry remains a safe bet for the long term.  Our strong funding position, based on a successful retail acquisition strategy and continued access to the wholesale market, provides a strong platform for further growth."