Centrus advises LHP on £30m ESG-linked RCF

Transaction Overview

Source: LHP

Lincolnshire based housing association LHP, who owns and manages over 12,000 homes, has arranged a £30m 7-year RCF with Danske Bank.

The facility also includes a 15-year term option, providing further flexibility. 

Centrus Role

Centrus collaborated closely with LHP to identify the key facility prerequisites, ensuring it would support in the fulfilment of LHP’s long-term goals.

Following this, Centrus ran a competitive process, engaging with 8 lenders. This process included:

  • Creation of lender presentation pack and facilitation of lender engagements
  • Term analysis and lender negotiation to enhance terms

This process resulted in Danske being identified as providing the best all-round solution.  

Centrus then supported LHP through the security and documentation process. 

Added Value

Securing the new facility with Danske has resulted in a number of benefits to LHP, including:

  • Maintaining LHP’s strong liquidity position 
  • Facilitating the removal of EBITDA MRI from LHP’s portfolio, significantly boosting capacity
  • Providing competitively priced funding, on both a drawn and undrawn basis
  • 15-year term option provides flexibility to increase facility longevity on a competitive basis, delaying any refinancing risk. 

“We are delighted to have worked with Centrus on the arrangement of the new RCF facility. The new facility as well as helping maintain our strong levels of liquidity, has helped facilitate the removal of restrictive covenants. This leaves LHP in a significantly stronger position to deliver our planned investment strategy and deliver better homes for our customers”

Kathryn Price, Executive Director of Finance – LHP

“We are pleased to have supported LHP during the fund-raising process. The facility has helped to unlock increased capacity that will ensure LHP are able to maintain high levels of investment in their stock. Centrus has been at the forefront of developing the RP market for ESG-linked funding, where the ability to reduce borrowing costs offers tangible benefits”

Tom Miller, Assistant Director – Centrus

For more information, please contact Tom Miller

Related credentials