Centrus advises Valleys to Coast on their first Sustainability Linked RCF

Transaction Overview

Valleys to Coast is a not-for-profit housing association that provides and manages nearly 6,000 homes across Bridgend, South Wales.

As Valleys to Coast increased their aspirations to deliver more homes, they needed additional liquidity to match the increased expenditure. Centrus advised on a holistic strategy to not just increase liquidity but ensure the overall treasury platform was fit for purpose.

Centrus Solution

• A full strategy review and market engagement process highlighted the key concerns for Valleys to Coast.
• A combination of accessing the capital markets via bLEND and a new bank RCF was chosen as the preferred solution.
• Centrus negotiated terms across a number of new and existing lenders, ultimately extending and amending an existing facility to more favourable terms.

Added Benefits

• Valleys to Coast will now benefit from long-term, fixed-rate finance from bLEND at very competitive rates – significantly below what it may be able to achieve independently in the capital markets, and with fewer covenants.
• The sustainability linked RCF aligns with Valleys to Coast’s overall sustainability and ESG strategy, ensuring it is financially rewarded for achieving its ambitious social and environmental targets.
• This will enable Valleys to Coast to improve the energy efficiency of its homes, reducing bills for its customers, and help increase employment in its local area through internship programmes.

“Centrus were supportive throughout the process, providing valuable advice and assurance for our Board. We have now secured cost-effective long term funding to enable us to deliver our ambitious corporate plan objectives in the years to come.”

Claire Marshall, Corporate Director of Finance, Governance, Strategy and Performance – Valleys to Coast

“It has been a pleasure working with Valleys to Coast to deliver a transformational financing programme for the business. Aligning their ESG strategy with the financing will allow them to deliver even greater value to their stakeholders.”

Lawrence Gill, Director – Centrus

For more information, please contact lawrence.gill@centrusadvisors.com

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