Housing provider Emh Group has completed a debt refinancing operation and bond sale to provide more flexible funding for its business plan.
The organisation, which operates across the East Midlands, has refinanced £270m bank facilities, including new finances of £90m, and successfully sold £100m of its bonds.
According to Emh, this move represents part of its strategy to maintain its commitment to delivering new homes, and investment in its existing properties to improve energy efficiency and decarbonise its homes.
Geoff Clarke, Emh’s executive director of finance, said “We are delighted to have completed this refinancing and bond sale, which is a testament to the confidence our funding banks, Lloyds Bank, NatWest, and investors have in our vision and track record.
“Their support will enable us to develop innovative and sustainable properties that enrich lives and contribute to the development of vibrant neighbourhoods.”
Lloyds Bank and NatWest, as core relationship banks, are said to have played an important role in ensuring the success of this project. Emh was assisted by teams at Chatham Financial as funding advisor, and Anthony Collins as legal advisor.
The £370m of loan facilities and bonds will provide Emh with the necessary resources to complete its development projects. The £100m bond sale reflects the confidence of investors in the organisation’s long-term viability and contribution to the social housing market.
John Horton, director of housing finance at NatWest, said: “We are very pleased to build on our long-term relationship with Emh by providing support which helps them to fulfil their strategic goals. It is important to NatWest that our customers and wider communities succeed, and assisting emh in addressing the demand for affordable and energy efficient homes is reflective of this ambition.”
Jatinder Dhaliwal, regional housing director at Lloyds Bank, said: “We’re proud to support Emh and look forward to seeing it realise its ambitions to provide people in the East Midlands with affordable, quality housing that is future proofed for years to come.”
Gowsikan Shugumaran , associate director, Chatham Financial, added: “We are delighted to have supported Geoff and his team in delivering this strategy through a mix of bank and capital markets funding, despite the challenging wider economic context. The successful outcome of this refinancing project has helped to unlock capacity and offers the management team greater flexibility to deliver the mission set out by group board.”
Image credit: Yuganov Konstantin – Shutterstock
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