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Case Study

£450M capital raising and restructuring for Yorkshire Housing

August 8, 2023


Following a change in management in 2020, Chatham assisted Yorkshire in restructuring their debt portfolio by simplifying covenants, improving the average life and maturity of the debt, reducing their borrowing costs, and expanding capacity to support development. This has involved raising and restructuring £450M worth of bank and capital markets debt over two years.


  • Yorkshire Housing is the largest housing association that operates solely in Yorkshire.
  • It is a 18,000-unit housing association with an ambitious development programme.
  • It had a security constrained portfolio, with a high cost of debt.
  • The association had an A3 credit rating with Moody's.
  • Overall, there was a complex debt and derivative portfolio with small, inefficient bank and capital markets facilities.

Our role

  • Chatham reviewed the debt portfolio, highlighting the ability to reduce cost of debt, diversify sources of funding, and improve security efficiency.
  • Chatham agreed on a methodology for assessing the benefit of refinancing.
  • The team regularly presented to the board on how Yorkshire could fund its development ambitions and appraised the different options against prevailing market conditions.

    "Chatham proactively addressed the changing market to create and execute a strategy to improve our debt portfolio and help us fulfill our development ambitions."

    Andy Oldale, Executive Director Finance and Governance, Yorkshire Housing

    Our approach

    • Chatham conducted a capacity review highlighting key constraints imposed by the portfolio on the business.
    • The team presented funding options showing benefits of alternative debt structures.
    • Chatham developed a pathway to the optimal debt portfolio and modelled and explained refinancing benefits to the board.
    • The team negotiated discounts and favorable covenants with multiple lenders, while also building a strategy addressing the key pain points of the business.
    • Chatham explored the impact on the rating and how best to retain the A3 Moody’s rating.


    • Chatham helped improve the credit standing of the business.
    • The refinancing allowed for an expansionary development programme with the business plan benefiting from greater operating margins and retained earnings.
    • Chatham negotiated innovative ISDA terms to minimise security constraints.
    • Chatham also helped Yorkshire successfully move to EBITDA-only interest covenants.
    • Overall, the exercise improved Yorkshire's security efficiency and substantially reduced the average cost of debt within the portfolio.

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    This material has been created by Chatham Financial Europe, Ltd. and is intended for a non-U.S. audience. Chatham Financial Europe, Ltd. is authorised and regulated by the Financial Conduct Authority of the United Kingdom with reference number 197251.