Black Country Housing Group (BCHG) has sealed a £60m financing deal that includes its first private placement and also an extended debt facility.
The funding package – arranged with support from Savills Financial Consultants – will underpin the delivery of the Black Country-based housing association’s business plan objectives, including building 261 homes by March 2025.
The deal for the 2,200-home landlord includes a £40m private placement, which is available in three tranches from this September and then April 2022 and April 2023. The average cost of the funds with the unnamed investor is 2.83% and the term is 30 years.
Santander has extended its existing £20m RCF (revolving credit facility) with BCHG. This is one of the first deals Santander has struck in the housing sector using the SONIA index as opposed to the more traditional LIBOR – use of the latter is being phased out.
Kaye Coulthard, director of finance at BCHG, said: “BCHG is delighted to have secured £60m of new facilities, which will enable us to provide much-needed investment in affordable homes in Birmingham and the Black Country. We very much look forward to building upon our strong relationship with Santander and our new investor, and would also like to thank our advisors, Savills Financial Consultants and Anthony Collins Solicitors.”
