Stonewater gains new funds for social housing growth

Social housing provider Stonewater has signed a £120m funding facility to help drive its housing development programme, which is set to deliver 2,765 new homes across England by 2021.

Stonewater secured the loan facility from Pricoa Capital Group, the principal asset management arm of US financial services group Prudential Financial.

The group is one of the UK’s largest social housing providers, with 30,000 homes under management and £1.6m in assets.

Stonewater will initially issue £100m of notes from the facility with a maturity of 30 years and a weighted average life of 28 years. The all-in coupon rate on the drawdown was under 3.1%. While the size of the facility is set in dollar terms, Stonewater issues in sterling and takes on no currency risk.

Stonewater can issue the remaining notes at any time over the next three years with a choice of maturities. This facility provides a secured source of cheap, long-dated funding with the added benefit of offering a potential source of further liquidity in the future at short notice.

John Bruton, executive director of finance at Stonewater, said: “This funding exercise highlights continued investor confidence in Stonewater and we are very pleased that Pricoa Capital Group has become a new funder for us. We are keen to take advantage of current long-term rates to maximise our ability to provide additional social housing in the coming years, and securing this new facility is an important part of our wider funding strategy.”

TradeRisks acted as arranger and advisor to Stonewater, with Devonshire’s and Morrison & Foerster acting as legal advisers.

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