A £60m financing deal has been secured by Black Country Housing Group (BCHG) that includes an extended debt facility and its first private placement.
The funding package was supported by Savills Financial Consultants and will ensure the Black Country-based housing association is able to fulfil its business plan objectives, including the delivery of 261 homes by March 2025.
The 2,200-home landlord’s deal includes a £40m private placement, which is available in three tranches - the first coming this September, followed by another in April 2022 with the final instalment coming in April 2023. The average cost of the funds with the unnamed investor is 2.83% spread over a 30-year term.
BCHG has also secured an extension of its existing £20m revolving credit facility (RCF) with Santander. This is one of Santander’s first deals in the housing sector using the SONIA index as opposed to the more traditional LIBOR, which 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.”