Centrus advises settle on £75m ESG-linked funding

Transaction Overview

settle has arranged a £75m RCF with National Australia Bank (“NAB”), of which £25m is unsecured. Both the ESG linkage and unsecured structure are a first for settle.

The leading Housing Association of around 10,000 homes, will use the additional liquidity and funding offered by this facility to continue its delivery of high-quality affordable homes across Hertfordshire, Bedfordshire, Buckinghamshire and South Cambridgeshire.

Centrus acted as sole advisor to settle and arranged the RCF.

Centrus Solution

  • We took a focused approach to the market, ensuring the terms were achieved, evaluating all offers against both cost vs tenor and strategic fit.
  • Centrus successfully negotiated a facility that is low cost, covenant friendly, and paves the way to move towards an unsecured structure in the future; the lender will also be able to lend more in the future which provides a good strategic fit.

Added Value

Whilst still relatively new to the sector unsecured facilities are increasing in prevalence. The attraction is two-fold; it offers increased agility whilst reducing operational complexity. Both are important for settle.

The ESG KPIs align with settle’s social purpose, ranging across the delivery of affordable properties, energy efficiency, and social impact.

Building more affordable housing is a key priority for us, and this new funding will go towards helping to meet the growing needs of the communities we serve.

“Centrus support and advice has been excellent throughout the process. Their expert market knowledge and project management has been instrumental in helping us achieve our funding objectives as well as being a leader in unsecured funding.”

Ebele Akojie, Finance Director – settle

“settle are a forward looking dynamic organisation that we are delighted to have supported in raising this innovative funding with NAB. The facility has quickly unlocked delivery of additional new homes. Centrus has been at the forefront of developing the RP market for both ESG-linked and unsecured where the ability to reduce borrowing costs and minimise security charging work offers tangible benefits.”

John Tattersall, Senior Director – Centrus

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