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Author: Georgie Knight

New Chief Sustainability & People Officer at Centrus

Posted on by Georgie Knight

George Roffey is taking on the new position of Chief Sustainability & People Officer at Centrus

This role aligns the commitment to our people with the integrity of using our platform for positive ESG impact.

To sustain your purpose, you need to sustain your people.

At Centrus we have brought our HR and our sustainable business responsibilities together.  The range of work across these two elements is simply vast and both will benefit substantially from a coordinated approach.

Back in 2016, Corporate Social Responsibility (CSR) was the acronym en vogue, and in my experience, it was making good strides in community work but was too often a side of the desk effort.  It was only just starting to nod its head towards broader social impact, or the climate crisis and it was hardly ever in the same room as financial performance.  Under the new ESG acronym, it has thankfully now passed an inflection point.

Evidence, learning, ideas, sharing, goals, science, regulation are just some of the things helping and even more crucially, increased demand has shifted the momentum. I sometimes refer to ESG as the David Attenborough effect – something in which every generation is now motivated to play their part.

The sustainability ambition at Centrus was a core founding principle that first attracted me to working here 5 years ago; ‘Build a sustainable group to help the essential sectors in which we operate’. I was reading Waste to Wealth: The Circular Economy Advantage at the time (thank you Peter Lacy), and I was motivated to meet founders who wanted to use their financial expertise in a way that would have tangible impact on core sectors of the real economy.  I was motivated to meet founders who did more than pay lip service to helping change for the good.

Bringing this Together

Culminating the pieces that you can control through your platform of work is a decent starting point and in our service provision at Centrus we create products that bring financial and sustainability benefits – like ESG linked loans, bonds, and derivatives. In this service provision, people are our most valued asset and therefore linking HR and Sustainability on common ground better enables this asset.

Being valued and respected in the workplace and knowing how your role contributes to wider ESG Goals, is gold dust.  With this support and awareness, you are then very naturally an advocate of the mission externally and under this new role our people and business purpose are inextricably linked.

This will be no easy task, and there are so many pieces to the puzzle that each Centrus team member can fit to add tangible, positive momentum for the essential sectors in which we operate. I am excited to coordinate measurable progress.

– George Roffey, CSPO

Whitepaper: LIBOR – SONIA: Nuts & Bolts and Systems

Posted on by Georgie Knight

There has been plenty written now on the LIBOR/SONIA transition and the methodology is becoming clear, albeit undoubtedly more complicated than originally envisaged. The purpose of this client briefing note is to offer some comments on calculation methodologies, discuss operational implications and explain how a treasury management system can help you through the transition. We also explain how the treasury management system we offer (titantreasury) can help from an operational perspective, for those clients where automation may be useful. 

This note has been prompted by the passage of time since our last paper on LIBOR (which has more on the historical context) but also by the announcement on 5th March 2021 by the Financial Conduct Authority on “future cessation and loss of representativeness of the LIBOR benchmarks”. The operative clause for many readers in the UK will be the statement:

“Immediately after 31 December 2021 …1-month, 3-month and 6-month sterling LIBOR settings will no longer be representative and representativeness will not be restored.”

This has two main effects in our view:

1) Confirmation that the policy remains on track. There are exceptions for USD LIBOR and likely to be provision to deal with genuine “tough legacy contracts” but for Sterling loans and derivatives the coffin has one fewer nail left not firmly hammered down.

2) It aligns with the framework set up by the International Swaps and Derivatives Association (“ISDA”) and it triggers the fixing of the Spread Adjustments which will apply for derivatives where parties have adopted the “ISDA Protocol”.

3) The Spread Adjustment for 3-month GBP LIBOR (for example) for relevant contracts is now set at 11.93 basis points. Corporates will often not be locked to these spread adjustments, even for derivatives, but they are gaining status as ‘benchmarks’.

Download our whitepaper to find out more…

LIBOR-SONIA_Nuts-Bolts-and-Systems_July2021Download

If you’re interested in learning more, please do not contact gilles.bonlong@centrusadvisors.com

Webinar: UK’s Energy Transition – the move towards a hydrogen economy

Posted on by Georgie Knight

Watch our Webinar

Green Hydrogen is seen as the next key step in generating heating for homes and fuel for transport. Whilst it has been talked about as the ‘fuel of the future’ since the 19th century, its promise is starting to be realised thanks to falling costs and scope for curbing emissions. The UK Government’s Energy White Paper sets out a picture of how we aim to achieve net zero emissions by 2050, but key questions remain…

  • Is there appropriate infrastructure for hydrogen as a fuel for transport?
  • How will hydrogen get to our homes?
  • Can hydrogen be produced cost effectively?
  • What is the UK govt doing to help and is this support fit for purpose?
  • Is this sector interesting for private finance?

Chaired by Terence Amako, head of M&A at Centrus, we have an exciting list of panellists helping us to answer these questions; joining us is John Morea, CEO at Scotia Gas Networks (SGN), David Surplus, Managing Director at B9 Energy, Martin Bradley, MD at Macquarie, and Thomas Studer, Technology & Innovation at Macquarie.

For more information, please contact terence.amako@centrusadvisors.com

Centrus Communities supports professional cycling in West Africa – Tour de Lunsar

Posted on by Georgie Knight

During our West Africa Challenge where 6 Centrus members rode 300km across Sierra Leone and Liberia to help support Street Child, a charity which supports vulnerable children and promotes education in these two and three other countries, we were grateful to the Lunsar Cycling team who looked after us throughout the trip so when the opportunity came up to support their efforts in promoting professional cycling in West Africa, we were very excited to join in and support where we could.

Tour de Lunsar, set up by Lunsar Cycling, is the biggest bike race in Sierra Leone displaying an exciting future of professional cycling in West Africa.

“Our project here is about helping young people enhance their lives through a bike…” We are very proud sponsors and glad to have supported such an incredible project.

We’re delighted that Centrus has partnered with us to deliver the Tour de Lunsar in 2021. Without their support we could not have created the biggest and best edition of the race to date, and we are hopeful of continuing the partnership into the future. We thank the team at Centrus, as well as their wider network of clients and colleagues from the bottom of our hearts.

Abdul Karim Kamara, CEO – Tour de Lunsar

It is a pleasure to support the incredible work that Karim and the wider Lunsar team have been doing. The Tour de Lunsar highlights the breadth of talent in the area and our commitment to see this event continue to grow. There has been an enormous amount of work from Karim and the Lunsar team and we are proud to be a part of this.

Jonathan Cawdron, Senior Associate – Centrus

Check out the photos and results from the race here: https://www.lunsarcycling.com/race-centre

Centrus expands equity credentials with new Head of Real Estate

Posted on by Georgie Knight

Centrus has appointed a new Head of Real Estate, Omer Fazal, who joins from CBRE’s real estate investment banking team.

Omer’s arrival is part of a wider strategy underway at Centrus to grow its offering across residential, healthcare and operating real estate companies with a focus on mergers and acquisitions, joint ventures and equity capital raising services. Given Centrus’ market-leading position in the affordable housing sector in the UK and Ireland, this will be a key area of focus, in particular working with a range of affordable housing providers and developers to diversify sources of funding by accessing long-term, institutional equity capital.

The appointment comes at a time where there is an increasing level of interest from institutional capital in the affordable residential sector in the UK given its secure, low-risk income profile and potential for growth with positive demand drivers and a constrained supply of good quality, affordable and professionally managed homes. In addition, the investor market is also attracted by the affordable housing sector’s very strong ESG characteristics, highlighted by the new widely adopted Sustainability Reporting Standard for Social Housing, which was published last year following a project initiated by Centrus and Peadbody.

“We are very pleased to welcome Omer to the Centrus team. This is a key part of an on-going strategy to build out our equity offering alongside our traditionally strong debt capabilities so that we can provide services to our clients right across the capital structure. As well as adding to our existing footprint in residential and social infrastructure, Omer’s focus on operational real estate will take us into another key real assets market.”

Phil Jenkins, Managing Director – Centrus

“This is an exciting time to be joining Centrus which is a clear market leader for Real Assets advisory across essential services sectors. With the ever-increasing demand from institutional investors for resilient income from robust business models, Centrus is in a unique place to provide differentiated, independent advice across residential, alternative and operational real estate sectors.”

Omer Fazal, Head of Real Estate – Centrus

Centrus initiatives demonstrate commitment to Sustainability & Zero-Carbon Agenda

Posted on by Georgie Knight

In many areas of life and economic activity, the disruption caused by COVID-19 is accelerating shifts and patterns that were already well underway before the pandemic. One positive consequence of the near cessation of economic activity and transportation in the early stages of COVID-19 was the dramatic improvement in air quality experienced across the world. This offered a glimpse of the environmental improvements that may be within reach as businesses and communities re-evaluate priorities and re-shape to take advantage of the new opportunities that have presented themselves.

Our core corporate finance business at Centrus is centred around supporting essential service industries in the residential, accommodation, transportation and infrastructure sectors, and we recognise the importance of the role that we can play in furthering our clients’ sustainability and zero carbon objectives through the efficient financing of these initiatives.

Last year Centrus, with one of our housing association (HA) clients Peabody, initiated a project involving other leading HAs, investors and market participants to help establish a credible, meaningful and comparable set of Environmental, Social and Governance (“ESG”) criteria that housing associations can use to demonstrate their impact to the financial community and other stakeholders.

Following a series of workshops and with insight gathered from lenders and investors over many months, we presented in June this year a draft White Paper www.ESGsocialhousing.co.uk which proposed sector-standard ESG criteria and metrics for discussion and consultation. A final report and set of recommendations for this industry standard framework will be published on November 10th 2020, with widespread support and commitments to adopt the framework from a range of industry participants.

This successful initiative was followed up in September by Centrus forming a new partnership with a major UK pension fund, the global sustainability consultancy, Anthesis Group, and the renewable developer and solar installer Eden Sustainable, to offer solar and other renewable energy solutions to our U.K. network utility clients.

The rationale for this latest initiative is a recognition on our part that energy efficiency, sustainability and resilience will be key in moving towards ambitious net zero-carbon targets. Targeting some of the biggest users of energy in the country makes strategic and practical sense, particularly as many of these entities have the financial stability and covenant strength to support the 20 year plus power purchase agreements that underpin the required investment. In many cases they also have the land resources to allow on-site energy generation or “behind the meter” solutions that changes the economic proposition of the investment case.  This is driven in Great Britain by the fact that according to OFGEM’s latest publications, network, environmental and social obligation costs currently make up over 40% over the average electricity bill. This means that currently those that can generate energy on their own sites and use private wires to supply their energy needs have a considerable advantage.  There is always the risk that environmental and social levies will be recovered in some other way to reduce this advantage in the future, but whilst the status quo remains, there is a growing benefit to on-site generation compared to purchasing energy via the grid. Whilst the generation of energy for internal use and the delivery of this by private wire is nothing new, what has changed is that smaller scale and mixed generation projects have become viable and are now seen as both necessary and desirable as a means of delivering ambitious carbon reduction and sustainability targets.

For many of our larger energy consuming clients, embracing long-term sustainable energy solutions can deliver both financial efficiencies while also delivering on existing environmental commitments, and allow them to become more ambitious in the goals that they set on a sustainable future. Sectors which play an important role in servicing communities within the real economy are at the heart of our business and we are committed to promoting sustainable solutions and facilitating the financing required to deliver them.

LAUNCH: Sustainability Reporting Standard for Social Housing

Posted on by Georgie Knight

Join us for the launch of the Sustainability Reporting Standard for Social Housing, an important development in unlocking the significant new private investment needed by the social housing sector.

The launch is the culmination of a 12 month process, initiated by the 17 sponsors and members of the ESG Social Housing Working Group and a consultation which has taken in the views of 250 organisations from across the social housing and financial sectors. We expect more than 60 housing associations, lenders and investors to commit being early adopters of the new Standard.

We’ve lined up some great speakers, including Bob Kerslake (Peabody), Harvey McGrath (Impact Investing Institute and Big Society Capital), Sarah Forster (The Good Economy), Phil Jenkins (Centrus), Paul Hackett (Optivo), Clare Miller (Clarion), Simon Century (LGIM), Natalie Elphicke (UK Parliament), and moderated by Merryn Somerset Webb (Moneyweek).

Please join us for what promises to be a lively and engaging discussion on the benefits of the new Standard.

REGISTER: Tuesday 10th November 2020 – 10.00am-11.00am GMT 

Our Panelists:

To learn more about how and why this initiative was started, visit www.ESGsocialhousing.co.uk.

Webinar: The AssetCore Debate

Posted on by Georgie Knight

Watch the webinar

Registered Providers are under huge pressure to increase spend on fire safety measures and de-carbonisation, whilst simultaneously struggling to support vulnerable tenants, rent arrears and deliver new housing supply. Leading you through this veritable minefield, will be Julian Ashby and Simon Dow, Previous and Interim Chairs of The Social Housing Regulator, expertly held in line by Phil Jenkins, MD of Centrus.

This webinar covered:

  • What to do in a time of recession; sacrifice development with uncertainty about the cross subsidy model, or land bank?
  • Should you fill your boots with cheap fixed interest debt or worry about negative inflation and an unsustainable rent formula?
  • Are money in the bank and development opportunities a winning formula for attracting merger partners or is low debt per unit the honey trap?
  • Walking the tightrope between delivery and staying on the right side of the Regulator and the Credit Rating Agencies?

“Covid adds new dynamics to stress testing; but it has also illustrated new ways of doing business and new ways of engaging with residents.”

Julian Ashby, Chair – AssetCore

Click here for the AssetCore website

UK social housing – establishing a sector-standard approach for ESG reporting

Posted on by Georgie Knight

Housing Associations’ impact is significant, and investor interest in the UK social housing sector is strong and growing. Increasing investor interest underlines the need for the UK social housing sector to clearly highlight and report on its strong Environmental, Social and Governance (ESG) performance.

Last year, in response to increasing interest and demand, Centrus, with one of our housing association (HA) clients Peabody, initiated a project involving other leading HAs, investors and market participants to help establish a credible, meaningful and comparable set of ESG criteria that housing associations can use to demonstrate their impact to investors. We hope that the approach will be of interest to associations, lenders, investors, regulatory bodies and government.

Following a series of workshops and with insight gathered from lenders and investors over many months, we present a draft White Paper and propose sector-standard ESG criteria and metrics for discussion and consultation.

The proposed 10 themes and 42 criteria are open for consultation at www.ESGsocialhousing.co.uk from Wednesday 6 May 2020.

A series of webinars are planned in June and you can register your interest and submit feedback on the website.

The ultimate aim is to increase private capital flows into the sector to complement public investment for the benefit of residents and communities. The leadership provided by Centrus on this project underlines our commitment as a business to sustainable, modern finance and the positive role that this can play in underpinning long-term investment to communities and broader society. As the leading corporate finance advisor to the UK social housing sector, we continue to work with our clients to provide innovative solutions and thought leadership in a fast-evolving environment.