Inside Housing – News – Care specialist becomes first housing association to make all bank debt unsecured
Anchor Hanover, England’s largest non-profit housing and care provider for the elderly, has refinanced its entire debt portfolio on an unsecured basis, including a new £ 300million loan sterling.
Anchor Hanover is England’s largest non-profit housing and care provider for the elderly (Photo: Getty)
The move makes Anchor Hanover the first housing association to transfer its banking facilities on a fully unsecured basis, which the group says will allow it to benefit from “the long-term stability of debt capital markets that will underpin its ambitious growth plans ”.
A key element of the refinancing is the new £ 300million Sustainable Syndicated Syndicated Revolving Credit Facility (RCF) (RCF).
The group of banks providing the RCF are Barclays, Mitsubishi UFJ Financial Group, National Australia Bank (NAB) and Santander UK, with Barclays acting as global coordinator and NAB as sustainability coordinator.
Unsecured debt does not come with any collateral, such as a social housing stock, which means loans are made based on Anchor Hanover’s creditworthiness.
As part of the refinancing, Anchor Hanover’s 54,000 homes also received a long-term A + credit rating from Standard & Poor’s, one of the highest in the industry.
Sarah Jones, Chief Financial Officer of Anchor Hanover, said: “We are delighted to have entered into the industry’s first unsecured sustainability-linked banking portfolio, with current and new banking partners.
“This refinancing represents excellent value for Anchor Hanover and will support our strategy to provide more and better housing, provide more opportunities for colleagues, be more efficient and be a more influential voice for more people. elderly.
” THE G [environmental, social and governance] This component underscores our commitment to sustainability for our current and future residents, colleagues and the communities in which they live.
Phil Jenkins, Managing Director of Centrus, Advisor on Refinancing, said: “We are delighted to have worked with Anchor Hanover on this innovative refinancing, which is designed to meet Anchor Hanover’s ambitious growth plans in providing housing and care services for the elderly. .
“By establishing the industry’s first fully unsecured banking book, Anchor Hanover will benefit from enhanced liquidity, improved asset efficiency and reduced operational risk.
“In addition, we are delighted to have structured the Anchor Hanover refinancing in a way that reinforces our commitment to sustainability and ESG. “
A number of housing associations have taken out sustainability-linked loans over the past year, and big bank Lloyds has said it invest £ 500million in ESG-focused social housing projects.