South Wales-based housing provider Caredig has undertaken a series of high-value transactions in a bid to transform its treasury portfolio.
This includes arranging a new 25-year £26m fixed-rate facility from Principality to refinance existing shorter dated and more restrictive debt.
A new £20m RCF has also been arranged with Santander.
A further c.£50m of existing funding has been restructured, with more flexible covenants and controls.
Caredig says the new funding “strongly enhances” its treasury position and “significantly” reduces its long-term refinancing and interest rate risk.
Further, the funding arrangements provide additional capacity for Caredig to invest in existing properties (including for decarbonisation), as well as increase its development programme for new homes.
The transactions builds upon the financing restructure undertaken in 2020, which sought to ensure the treasury platform is robust but sufficiently flexible to adapt to future needs.
‘Significantly stronger position’
Cerys Gregory, director of Finance, Development, and Governance at Caredig, said: “The new funding arrangements, have placed Caredig in a significantly stronger position to implement our future strategy.
“We now have a more robust treasury platform, that better supports our mission of helping to build communities where people can flourish.”
Sam Goldman, director at Centrus, which acted as treasury and funding adviser, said: “The outcomes achieved by Caredig, significantly enhance its ability to meet its ambitions, with reduced risk and enhanced long-term viability.
“We are proud to have supported Caredig through this process and with the excellent results achieved.”
Centrus led negotiations across the transactions and guided Caredig through running a multi-funder process (covering all bank and capital markets options), in seeking the long-dated finance.
Caredig manages around 3,000 homes in south-west Wales.
Image: Worawee Meepian/Shutterstock
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