Housing association Magna Housing has secured £150m of financing from Allied Irish Bank, Barclays and Nationwide to support the provision of 1,500 homes over the next five years.
The package includes a £70m term loan from Allied Irish Bank and £80m of revolving credit facilities split between Barclays and Nationwide. The cash will be used to support Magna’s target of bringing forward up to 300 affordable homes a year.
It also plans to continue to invest in its existing homes, including energy efficiency improvements partly funded by the government’s £15bn Warm Homes Plan.
The funding agreements have built-in flexibility allowing Magna to draw on a mix of revolving credit facilities and term debt, with costs spread out to help provide security over the investment period.
Magna was supported by adviser and debt arranger Centrus and legal counsel Bevan Brittan on the deals.
Ian White, head of finance at Magna, said: “We’re delighted to have secured funding to enable Magna to continue to deliver more new, affordable homes in line with our strategy.
“The support from Centrus and Bevan Brittan not only ensured appropriate governance but most importantly achieved best value, allowing us to keep more cash to invest in new homes, sealing a great job done by all.”
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