Chatham Financial, partnering with their client, believe housing, executes the first ever sustainability-linked private placement for a housing association
- April 26, 2021
believe housing has secured an £85 million sustainability-linked private placement with Legal and General Investment Management. It is the first for a housing association in the capital markets and will support believe housing’s multi-award-winning affordable home building programme and continued upgrading of existing homes. The placement, which has a maturity of 32.5 years and a deferred funding element, links the pricing of the notes to the company’s energy efficiency, in line with the UN's Sustainable Development Goal (“SDG”) 13 on climate action and 11 on sustainable cities and communities. Proceeds from the transaction will be used to refinance existing debt and for general corporate purposes.
Chatham Financial, the largest independent financial risk management advisory and technology firm, supported believe housing through the refinancing and acted as Sole Placement Agent in this transaction.
Sohail Singal, Associate Director at Chatham Financial, said, “We are delighted to have led this transaction and supported believe housing on this groundbreaking private placement. The strong demand from investors during the bidding process is a testament to the leadership at believe housing and its unique credit story which allowed believe housing to take advantage of attractive market conditions. The notes, which are sustainability-linked, will support believe housing in their desire to grow and deliver a positive environmental, social, and corporate governance impact and change peoples’ lives.”
As the one of the largest housing associations in the north east of England, with over 18,000 homes, believe housing secured funding after a competitive funding process. News of the placement comes as believe completed a refinancing of its existing LSVT loan which now gives it capacity to meet its development programme of 1,250 new homes by 2026.
Alan Smith, Executive Director of Investment, Growth, and Performance at believe housing, commented, “This funding will guarantee that our vision of a life without barriers can be brought to more people right across the region. Being an award-winning housing association is about helping people into work, providing high-quality advice, and supporting the voluntary groups that make a difference in our communities.
“This private placement is part of a £1/4 billion package of investment that will help us to grow our new home construction programme, improve existing homes, and increase our investment and support in communities. It’s great news for us, and the affordable housing sector as a whole, that major private sector funders share our passion for doing the right thing for customers, for the business, and for the environment, too.”
Neil Waller, partner at national law firm Trowers, said, “We are really pleased to have supported believe housing on this transformational project, which will lay the foundations for their financing structure for many years to come.”
About Chatham Financial
Chatham Financial is the largest independent financial risk management advisory and technology firm. A leader in debt and derivative solutions, Chatham provides clients with access to in-depth knowledge, innovative tools, and an incomparable team of over 600 employees to help mitigate risks associated with interest rate, foreign currency, and commodity exposures. Founded in 1991, Chatham serves more than 3,000 companies across a wide range of industries — handling over $750 billion in transaction volume annually and helping businesses maximize their value in the capital markets, every day.
About believe housing
believe housing is a multi-award-winning housing association with 18,000 homes covering almost 900-square-miles from the Durham coast to the Pennines. It is committed to innovative tenancy support and community investment to achieve its vision of offering customers a "life without barriers."
On behalf of Chatham Financial
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