Centrus advises Broadland Housing on £50m private placement to fund new affordable homes

Transaction Overview

Centrus has supported Broadland Housing Association by advising on a £50m private placement. The Notes, which have a final maturity of 35 years, were placed with BAE Systems Pension Funds. An initial tranche of £20m was drawn at closing with draw down of the remaining £30m deferred until 2019.

The Norwich based landlord intends to use proceeds from the £50m Private Placement with BAE to support a development programme to build new affordable rent and shared ownership homes. The deferred element gives Broadland certainty over future interest costs and future funding.

The transaction demonstrates the continued institutional funding capacity and appetite for long dated finance from the Social Housing sector.

“By securing long term debt capital at an attractive all in cost Broadland is now in a position to finance the construction of up to 600 new affordable homes. In order to match the timing of the requirement for finance with the construction programme, BAE agreed to defer draw down of the majority of the funds until 2019 while fixing the coupon on the full £50m at the time of pricing.  We are delighted to have assisted Broadland in meeting its development aspirations.”

Robert St John, Managing Director – Centrus

“This was Broadland’s debut on the capital markets and involved a learning process for us. Centrus was key to guiding us through the process and managing the tender process which resulted in a highly competitive and flexible deal with an investor we are looking forward to working with.”

Julian Foster, Executive Finance Director – Broadland

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