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4 minute read
Home Group boosts liquidity by £260m
Steve Heywood, media manager
Home Group has increased its liquidity by £260m after reaching agreements on revolving credit facilities with three existing relationship lenders, as well as one new lender.
The facilities from existing lenders Lloyds, HSBC, and Nationwide have increased to £250m, £175m and £140m respectively and Barclays are providing a new facility of £110m.
As part of this financing exercise, Home Group has sought to align and modernise financial covenants, spread refinancing risk, achieve competitive commercial terms, and secure options to extend the facilities in future.
The facilities will enable Home Group to continue to invest in its existing homes as well as develop new homes for affordable rent, social rent, and affordable home ownership in line with the group’s mission to build homes, independence, and aspirations.
Home Group were supported in this finance activity by their retained treasury advisors, Centrus, with Devonshires providing legal support. The legal advice to the banks was provided by Pinsent Masons.
Home Group’s Director of Treasury and Investor Relations, Steve Hallowell, said: “This financing exercise follows a review of our treasury strategy which was approved by our Board in November. The strategy at this point focuses on increasing the pool of revolving credit facilities available to support our investment ambitions. We do expect to return to the capital markets for longer dated funding in future to repay drawn facilities and refinance some our shorter dated funding.
“We are very grateful for the continued support of lenders Lloyds, HSBC and Nationwide, who have been key financing partners for the group for many years. And we are delighted to add Barclays to our pool of strategic funding partners. We very much look forward to working with all of our funders in future as we contribute much needed additional affordable housing in response to the housing crisis and improve the energy efficiency of our homes as we target a minimum EPC C for our homes by 2030 and net zero by 2050.”
Melanie Russell, Director of Housing at Lloyds, said: “There is a chronic shortage of social housing across the country and so we are proud to support Home Group as it plays its part to address this issue. We look forward to seeing the team deliver its many goals, including the creation and management of more much-needed affordable housing across the UK with this additional sustainability-linked funding from Lloyds.”
David Whelan, Relationship Director, Social Housing, at HSBC UK said: “HSBC UK have enjoyed a fantastic lending relationship with Home Group for a number of years and we are delighted to have been able to further support the group’s development and investment ambitions through our new £50m facility. This will enable the group to continue to build more affordable housing, alongside improving the existing homes for the benefit of their customers.”
Nationwide Senior Lending Manager, Public Sector Team, Clive Williams said: “We’re delighted to increase our funding relationship with our long-standing customer Home Group. We look forward to working with them as they continue to invest in their existing stock and build new homes, which is closely aligned to both our sustainability targets and our social objective of being a beacon for mutual good.”
Robert Hession, Relationship Director, Barclays Social Housing Team said of the new agreement with Home Group: “We are delighted to be a funder to Home Group, for whom we have been a proud banking partner for many years. Provision of a sizeable new RCF line will support Home Group to invest in its existing homes, develop much needed new social housing and deliver for its present and future customers. This funding demonstrates our continued commitment to the social housing sector in the North East and across the UK more broadly.”
Lawrence Gill, Director, Centrus commented: “Centrus are delighted to support Home Group in securing market-leading terms, enhancing liquidity, and laying a strong foundation for future capital markets activity. This transaction reflects the strength of Home Group’s credit, a clear strategic focus, and a collaborative, well-executed approach to lender engagement. It has been a pleasure to work alongside their team on a financing that delivers real long-term value.”