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Centrus supports Wandle Housing Association implement titanTreasury

Challenges

With the support of Centrus, Wandle Housing Association has successfully rolled out titanTreasury as their new Treasury Management System (TMS). Wandle Housing Association has grown into an organisation that now manages over 7,000 homes across nine South London boroughs. Wandle is committed to delivering on its vision of providing homes to be proud of and services you can trust.

To support their operations, Wandle sought an integrated TMS capable of calculating SONIA-based interest rates, assessing fixed-rate debt costs, and automating monthly and quarterly report production.


Centrus solution

  • titanTreasury is a powerful Treasury Management System (TMS) crafted to support finance teams and treasurers with advanced features for tracking and managing a wide range of risks, including market (interest rate, FX, and commodity), credit, and liquidity exposures.
  • During the rollout, Centrus worked closely with Wandle’s treasury team, delivering comprehensive training and support to ensure they were fully prepared to use titanTreasury effectively and confidently.
  • titanTreasury enables precise SONIA-linked interest calculations and ensures that all payments are made on schedule. Wandle’s treasury team is now confident that the system can reliably oversee interest payments, handle capital repayments, and calculate break costs for their fixed-rate debt structures.

Value added

titanTreasury benefits:

  • Oversight of upcoming payments.
  • Access to month-end, quarter-end and regulatory reports.
  • Clear view of debt maturity ladder.
  • Automated monthly interest accruals.

With streamlined financial operations, Wandle is now in a stronger position to fulfil its purpose of supporting people across South London who need a home. By improving their financial processes, they can better tackle the shortage of good-quality affordable housing and continue providing homes for those most in need.

“Centrus demonstarted a thorough understanding of our requirements and developed a detailed and practical implemention strategy.

Post-implementation support continues to be both responsive and helpful and has been invaluable during the inital phase of deployment.

I look forward to a long and mutually beneficial relationship with titanTreasury team.”

Ian Anderson, Asisstant Director, Corporate Finance – Wandle Housing Association

For more information, please contact Gilles Bonlong, Head of System Implementation – Centrus.

Centrus facilitates partnership between Abri and Octavia, increasing capacity by £200m p.a. and enhancing financial resilience


Transaction overview

Centrus advised Abri Group and Octavia Housing on the formation of their new partnership to become a 55,000 home organisation, increasing capacity by £200m p.a. and enhancing financial resilience. The engagement was delivered in a cost-effective manner, with focused lender negotiations protecting >95% of the value in existing bank facilities and forward consent achieved for Octavia Housing to fully combine with Abri Group in the future.


Why does this transaction/engagement make a difference?

  • Delivered partnership in a cost-effective manner; focussed negotiations with lenders protected >95% of the value in existing bank facilities.
  • Target financial covenant levels and definitions harmonisation achieved, resulting in substantial increase in capacity and financial resilience by £200m p.a. on average over the next decade, providing Abri with a stronger platform to build new homes and invest in existing ones.
  • Greater corporate freedoms around financial support and merger consents were negotiated, including forward consent for Octavia Housing to fully combine with Abri Group in future.
  • Arranged £175m of new RCFs with existing bank lenders at attractive pricing and suitable covenant packages, bolstering medium-term liquidity and materially reducing near-term refinancing risk.

What did Centrus do to make it happen and add value?

  • Used our comprehensive knowledge of each lender gained through our unrivalled experience in housing association mergers, particularly concerning lender exposure limits, tenor appetite and preferred covenants, to negotiate a great economic outcome which represented value for money for the combined organisation. This also included successfully negotiating lender transaction fees down to reasonable levels.
  • Provided detailed insight into potential treasury costs and benefits that could be incurred through the transaction, as well as a fair valuation of capital markets debt liabilities being transferred, that allowed Abri to construct a thorough and prudent financial plan for the combined organisation.
  • Developed a detailed funding strategy for the combined organisation which deals with short-term refinancing requirements and provides a framework for meeting future funding needs. The strategy enables a significant reduction in treasury risks while providing flexibility over future funding sources and timing.

“Abri’s partnership with Octavia allows the combined organisation’s vision to be realised; a founding housing association committed to exemplary homes and services. It provides the combined organisation with the opportunity to accelerate Abri’s strategic intent, leveraging its growing influence and resilience to provide excellent homes and services to customers, and best-in-class employment for staff.

The Centrus team’s unwavering commitment and impressive performance played a pivotal role to enable the rescue and preservation of Octavia Hill’s housing management legacy, allowing the combined organisation to continue her work as a reformer and positive disruptor. A reimagined Octavia Foundation will be central to this, with a broader remit across community investment, education and research, and thought leadership.

Centrus’ expert advice and support during the analysis, negotiation and completion stages of our engagement with a diverse group of funders was invaluable. This engagement was a particular challenge given Octavia’s well reported regulatory issues at the time, however the team at Centrus, led by Lawrence Gill and Akhil Shah, delivered on key targets within challenging timelines.

The Centrus team provided real commercial insight and helped us make key decisions on structure and terms, supporting through complex negotiations. They were proactive and very responsive, and great to work with as always.”

Caroline Moore, Chief Financial Officer – Abri Group

For more information, please contact Lawrence Gill, Director, Housing, Education & Care – Centrus.

Centrus Advises on Launch of Proxima, France’s First Private High-Speed Rail Operator

Transaction overview

Centrus provided strategic advice and support to Antin Infrastructure Partners and the founders of Proxima, Rachel Picard and Tim Jackson, in establishing France’s first privately owned high-speed rail operator. The project involved securing Antin as the sole equity provider and delivering the necessary financial framework to launch operations, which will add over 10 million new high-speed rail seats annually to meet growing capacity demands in France.


Centrus’ solution

Centrus acted as a commercial and financial advisor, playing a crucial role in the competitive procurement process for a fleet of 12 new high-speed trains. The team also secured a long-term maintenance agreement with Alstom and advised on the arrangement of a senior debt facility to finance the train acquisition. These solutions ensured the project’s financial viability while maintaining the high standards required for a landmark infrastructure initiative.


Centrus’ added value

By leveraging its expertise in transportation finance and its commitment to sustainable infrastructure, Centrus delivered a tailored financial strategy to bring Proxima to fruition. Rachel Picard acknowledged the dedication of Centrus’ team in reaching this milestone, while Managing Director Stephen Layburn highlighted Proxima’s role in supporting global sustainability efforts through enhanced mass transit solutions. The successful launch of Proxima underscores Centrus’ capability to drive transformative infrastructure projects.

“Special thanks to Steve Layburn and Louis Dubois in the Centrus Transportation team, for their commitment and hard work on getting the project through to this important milestone.”

Rachel Picard, CEO – Proxima

“High quality mass transportation is critical to the global ambition to reduce carbon emissions.  Proxima will deliver more the 10 million new seats on the high-speed rail network in France to support this objective.  We are proud to have been part of this journey with the founders and Antin, and to play our part in birth of this new business venture.”

Stephen Layburn, Managing Director – Centrus

For more information, please contact Stephen Layburn or Louis Dubois

Centrus acts as the financial advisor for NWEN (UK) on its investment into one of the largest private wire networks in the UK

Transaction overview

Centrus’ client, North West Electricity Networks (UK) Limited (“NWEN (UK)”), NWEN (UK) is an electricity company based in Manchester, England focused on the design, construction, and operation of electricity networks. NWEN (UK)’s wholly owned subsidiary, Electricity North West (Construction and Maintenance) Limited, provides design, construction, control, operations, and maintenance services to private electricity infrastructure owners. Another wholly owned subsidiary of NWEN (UK) is Electricity North West Limited, the licensed distribution network operator for the North West of England, including Greater Manchester, Lancashire, and Cumbria.    

NWEN (UK) has committed to invest an initial £40m to enable the upgrade and expansion of the private electricity distribution network (“PDN”) to service existing and future tenants. When complete, it is expected to be one of the largest PDN’s in the UK. 

This opportunity is a flagship transaction for NWEN (UK), cementing it as a leading provider of private infrastructure-as-a-service solutions. 


Centrus’ solution

Centrus acted as both the financial and commercial advisor to NWEN (UK) which included: 

  • Identifying an appropriate capital commitment structure and valuation methodology for the new joint venture. 
  • Assisting NWEN (UK) in the design and preparation of key due diligence workstreams to support the acquisition and joint venture agreements. 
  • Comprehensive support of the commercial negotiations with the joint venture partner.
  • Support with investment and valuation case preparation. 
  • Project management of transaction with an embedded team acting as an extended arm of NWEN (UK). 


Centrus’ added value

  • Successfully supported NWEN (UK) in valuing the transaction to achieve required internal returns and placing NWEN (UK) ahead of the competition to obtain exclusivity. 
  • Successfully created a commercial structure that supported the transformation of the NWEN (UK) private electricity infrastructure-as-a-service solution. 
  • Centrus worked collaboratively with NWEN (UK)’s legal advisors, Pinsent Masons, to successfully close the transaction. 

“This is a great opportunity for NWEN (UK) to continue to expand its investment in new zero enabling electricity infrastructure and to deliver high-value jobs and unlock economic growth in the North of England. Centrus were instrumental in assisting us design and implement an investment structure and were crucial in supporting us through financial close.” 

Ian Smyth, CEO – North West Electricity Networks (UK) Limited 

“Centrus is delighted to support its valued client in this exciting collaboration. This joint venture represents a unique opportunity for NWEN (UK) to expand its non-regulated business and invest in critical infrastructure that will drive regional economic growth. We’re proud have played a significant role in helping deliver this ambitious project and look forward to seeing the positive impact it will bring to the community.” 

Geoff Knight, Executive Director – Centrus 

For more information, please contact Geoff Knight, or Barney Harris .

Centrus arranged £70m of new funding and advised a £90m portfolio restructure


Transaction overview

Hafod, a Welsh registered registered social landlord providing affordable housing and care support, has obtained £70m in new funding whilst also restructuring £90m of debt across their treasury portfolio.

Hafod’s treasury portfolio was characterised by legacy bank facilities which required a complete restructure to:

  1. Modernise covenants; gearing and interest cover covenants required alignment to market – this allowed them to materially increase headroom and reduce covenant risk.
  2. Suitably fund the business plan; the debt portfolio required a reshape to improve cost efficiency and de-risk the business.
  3. Manage risk; bank facilities, and associated fixed rates were to mature in the near term and required refinancing/restructuring to reducing interest rate and refinance risk.


Centrus’ role and value add

  • Centrus acted as financial advisor, identifying both the optimal funding solution to meet Hafod’s needs and then subsequently seamlessly executing it, ensuring all Hafod’s objectives were achieved.
  • Centrus’ in-depth knowledge of the market meant we were perfectly placed to negotiate on Hafod’s behalf to reset current covenants, request additional funds and have a targeted approach to the wider market; ensuring that terms achieved both value for money and Hafod’s treasury objectives.
  • Centrus’ diligent management of the process, from origination of the strategy to executed documentation, meant the process was efficiently delivered within the required timeline. This was particularly important when external conditions meant that Hafod had to react quickly and efficiently to ensure the best possible outcome.   

“Centrus worked with us to develop our strategy before then leading on its execution. The team at Centrus ensured we have been able to control the process throughout despite, at times, a challenging backdrop and ultimately to materially improve our treasury position. With this work complete we can now focus on delivering our ambitions to build 500 homes over the next 5 years”

Chris Judson, Interim Corporate Director – Finance, Investments and Development, Hafod Housing Association

Centrus arranges ¥12bn private placement for The Baillie Gifford Japan Trust PLC

Transaction overview

The Baillie Gifford Japan Trust PLC (“Japan Trust”) is an investment trust focused on investing in Japanese companies. Managed by Baillie Gifford & Co, a global asset management firm based in Edinburgh with assets under management of approximately £225 billion, this trust aims to provide capital growth by investing in stocks of Japanese companies with high growth potential.

On the 24th July 2024, Japan Trust announces that it has issued ¥ 12bn of fixed rate, senior, unsecured privately placed notes split into three tranches of ¥4bn, maturing in 5, 10 and 14 years from the funding date of 20 November 2024.


Centrus’ solution

Japan Trust has issued three tranches of privately placed Notes:

Coupons are payable semi -annually.

  • The proceeds of the Notes will be used to repay existing bank debt of ¥9.3 billion maturing in November 2024 and ¥2.6 billion maturing in March 2025.
  • Centrus acted as arranger of the issue of Notes, advising on the structure of the transaction, drafting an investor presentation and arranging meetings with a selected group of institutional investors.


Transaction outcome

This transaction provides the Japan Trust with medium-term financing at a range of maturities and a competitive weighted average interest rate of 2.05%.

The Japan Trust Board remains committed to the strategic use of borrowings for the Company in order to enhance returns to shareholders over the long term. This new financing will maintain availability of earing capacity for the Japan Trust and fixes the cost of borrowing for an extended period, providing certainty.

“Having considered various financing options, the Japan Trust board decided to access the institutional private placement market with its debut financing.

Following meetings with selected investors, Japan Trust received bids with maturities ranging from 3 to 20 years. A single investor was chosen which provided tranches of ¥4 billion with an average maturity of just under 10 years thereby achieving a blend of medium term finance and at an attractive overall cost.

The investor agreed to defer settlement until November 2024 thereby allowing Japan Trust to coordinate the closing of its new financing with the maturity of bank debt of ¥9.3 billion in November with a further ¥2.6 billion bank debt maturing in March 2025.”

Robert St John, Consultant – Centrus

For more information please contact Robert St John.

Centrus advises Peel on £45m NRE financing

Company overview

  • Peel NRE, part of the Peel Group, is at the heart of the nation’s activity around clean energy growth and the circular economy – helping the UK achieve net zero by 2050.
  • Peel is one of the leading property and infrastructure investors in the UK, focused on Ports, Airports, Property and Energy.
  • Peel NRE is a real estate business focused on assets linked to low carbon energy generation, including energy from waste, wind farms and heat networks.


Transaction overview

Peel NRE secured a new standalone £45m senior term loan, having previously been financed by a wider Peel Group facility. The new debt is provided by HSBC and NatWest for a three-year period, plus two one-year extension options.


Centrus’ added value

  • Leveraging expertise across the real estate and infrastructure sectors, Centrus highlighted the infrastructure-like characteristics of the portfolio to achieve the most optimal financing terms.
  • Centrus prepared a financial model and comprehensive marketing materials to highlight the credit strengths of the Peel NRE transaction.
  • Centrus’ strong relationships with banks helped drive a competitive process and ensured the transaction was delivered smoothly.

“Centrus worked hard on this transaction to deliver a new standalone debt facility for our NRE division. Centrus led the process from end-to-end, resulting in a well-structured, cost-effective solution and providing a strong foundation for Peel NRE to grow. We look forward to working with Centrus again in the future”

Elise Mannix​​​​, Associate Director, Corporate Development – Peel Group

“Centrus is delighted to have advised the Peel Group on this new standalone financing facility for Peel NRE with HSBC and NatWest. The transaction reflects the high-quality nature of the NRE portfolio and provides a strong foundation for the future growth of the business.”

Scott Douglas, Director, Capital Markets -Centrus

For more information please Scott Douglas.

Centrus arranges new funding for Cottsway

Transaction summary

Cottsway has successfully restructured its treasury portfolio, securing £175m of new facilities and restructuring £195m of existing facilities with the help of Centrus. This comprehensive refinance delivers interest savings, harmonises covenants, and now positions Cottsway to continue meeting the high demand for social housing in its operating regions.



Transaction overview

Cottsway is a registered provider of social housing, providing over 5,700 homes for rent and shared ownership in West Oxfordshire, Gloucestershire, Wiltshire and Worcestershire. Over the last decade, these regions have experienced strong population growth, exacerbating the already significant demand for social housing, demonstrated by Cottsway’s occupancy rate of 99.3%. Cottsway work in partnership with Homes England and local authorities to fulfil such local need, and have developed over 2,000 homes since its formation.

Formed in 2001 as a LSVT (Large Scale Voluntary Transfer) from West Oxfordshire District Council, Cottsway’s outdated and expensive LSVT debt was constraining long-term ambitions and corporate flexibility.

To address these challenges, Centrus was engaged to perform a comprehensive treasury review for Cottsway. The review aimed to harmonise covenants and controls (including a transition to EBITDA only covenants) whilst also identifying opportunities to lower interest costs and ensuring sufficient facilities were in place.

Centrus devised a lender engagement plan and spearheaded negotiations with both bank and capital market lenders.

“This new funding is part a major re-finance programme for Cottsway which has allowed us to repay legacy debt and secures our corporate ambition to provide more homes in the communities we serve. We are delighted to have our new lenders alongside us and look forward to building a partnership for the future. We are also delighted to have been working with Centrus who have been a huge support.”

Richard Reynolds, Chief Executive – Cottsway


Transaction outcome

The negotiations led to a substantial restructuring and refinancing of Cottsway’s treasury portfolio. This included:

  1. £125m of new funding, split between capital markets and bank term loans. These funds were utilised to repay existing lenders.
  2. Restructuring £195m of existing bank facilities and private placements to improve and harmonise covenants, with a focus on transitioning to EBITDA only covenants.
  3. Extending and increasing liquidity by £50m, ensuring sufficient facilities are in place to deliver Cottsway’s business plan.

This restructure was executed in a complex interest rate environment, requiring careful consideration of the tenor of new facilities. The refinance involved a 20-year private placement and 7-year term loan, aligning with the weighted life of the debt being refinanced. This approach avoided fixing a significant portion of Cottsway debt for a long period at a single point in time, whilst also managing medium term interest rate risk and ensuring appropriate longevity in the new portfolio.

A significant discount on prepayment was negotiated with one outgoing lender, alongside the absorption of material break costs. Additionally, the refinance addressed an expensive off market margin with a second lender which was due to increase further in 2025. These factors allowed the refinance to deliver interest savings whilst unlocking capacity and increasing corporate freedom within the new and restructured loans.

Cottsway was supported by law firms Trowers (Banking) and Devonshires (Security) throughout the process.

“The quality of advice, support and responsiveness from Centrus has been exceptional in delivering a major refinance for Cottsway involving multiple lenders and a relatively complex negotiation landscape. The Centrus team is first rate.”

Stephen Leonard, Resources Director – Cottsway

“We are delighted to have arranged these new facilities for Cottsway and to conclude the successful reshaping of their treasury portfolio. The new facilities form part of a wider refinance of legacy debt which has unlocked capacity and lowered interest costs, helping Cottsway to continue the great work that they do in their communities. It has been a pleasure to work with Cottsway throughout.“

Tom Archer, Assistant Director – Centrus

For more information please contact Tom Archer.

Centrus provides stress testing evaluation for Heylo Housing

Engagement overview

Heylo was established in 2014 and has since grown to become one of the UK’s leading shared ownership for-profit registered providers. ​

Heylo engaged Centrus to conduct a comprehensive stress test review, which included an evaluation of the stress tests, the testing process, results and proposed mitigants.​

Following the analysis, Centrus presented the findings to the Heylo Board, providing assurance that the stress testing adequately addressed potential risks to Heylo and incorporated appropriate mitigants.​


Centrus’ solution and value add

  • Benchmarking and insight: Centrus’ benchmarked existing tests against best practice within the sector and recommended new and alternative tests to ensure Heylo’s testing suite provided useful insight into the business plan’s resilience under challenging yet realistic scenarios.​
  • Analysis and comparison: Centrus assessed the effectiveness of each mitigant proposed by Heylo, including an appraisal of Heylo’s ability to implement each mitigant and a comparison to those used by other registered providers.​
  • Engagement and accessibility: We pride ourselves on our advice accessible and took great care to ensure all key stakeholders fully understood the analysis and were comfortable endorsing the testing approach.​

“We recently appointed Centrus to undertake a stress testing evaluation for our regulatory vehicle.​

Not only did we find them extremely responsive and completing the work quickly, we found their level of commentary and feedback valuable and at a quality above that we had received in previous years from other providers”​

Jonathan Conway​, Director of Corporate Finance – Heylo Housing ​

For more information, please contact Lawrence Gill, Director at Centrus