whg Completes Sector First Deferred Funding Deal

• 16th October 2020

Corporate news

Leading Midlands’ landlord whg has finalised a new £75 million deal which will be used to help it achieve its ambitious house building targets.

The publicly issued deferred deal marks the first by an aggregator in the social housing sector.

The £75m transaction had a price of 2.26 per cent and a spread of 148 basis points (bps) over gilts, deferred for 12 months.

Richard Nowell, Treasury Manager, said: “This funding will help us realise our ambitious growth strategy to expand the services offered to our customers and build new affordable homes across our communities in the Midlands.

“The inclusion of deferred drawdown under the Blend model means we can take advantage of current market conditions to secure the funding we need in the future and is a positive development for the affordable housing sector.”

Andy Howarth, Director of Finance, said: “Arranging 34 year funding at such a good rate provides certainty and value to the business plan and supports our corporate plan aims.

“We are delighted to have participated in the first deal of its kind through an aggregator and look forward to more associations being able to participate in the future.”

whg recently published strong financial results, with an operating surplus of £37.6m and an operating margin of 25.5%, from income of over £112m.

The housing association also retains a strong A3 stable rating from Moody’s credit rating agency this year and continues to be rated G1 and V1 by the RSH.