Centrus advises United Welsh on £50m fundraising to enable growth ambitions

Transaction Overview

Around 700 much needed homes will be built in South Wales after Caerphilly-based housing association United Welsh agreed a £50 million loan with Scottish Widows, at a highly competitive fixed rate for 30 years.

The loan will enable United Welsh to contribute to the Welsh Government’s target to build 20,000 new affordable homes and once completed will bring United Welsh’s total housing stock to more than 7,000 properties across South Wales.

Centrus Solution

Centrus was engaged to undertake a treasury and funding review, guiding United Welsh towards the optimal strategy for raising additional finance to support growth ambitions.

Once the fundraising strategy was agreed, Centrus supported United Welsh to identify the optimal investor, including benchmarking and negotiations. In the lead up to execution, and during the Covid-19 pandemic, Centrus provided guidance on market conditions and timings, resulting in execution of the transaction at a very favourable all in cost.

The transaction comprised highly attractive terms, including a multiple deferred structure over a relatively long term compared to general market, providing future committed funding aligned with the business plan and mitigating interest rate and refinance risk.

United Welsh is a long-standing client of Centrus, where the relationship is underpinned by mutual respect and the ability to flex the scope and degree of support provided, ensuring that value for money is delivered.

“We are delighted to have completed this arrangement with Scottish Widows during such an uncertain time. It will enable us to build additional much-needed homes at a time when home is more important than ever. Our Team did a fantastic job in securing this loan at such a competitive rate and we are very grateful for the support they received from Centrus to deliver this outcome which will make a difference to the lives of so many people.”

Lynda Sagona, Chief Executive – United Welsh Housing Association

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