Caledonia Partners with Natwest to Secure '75M of Sustainable Funding
Caledonia intends to use the funding to construct over 500 energy-efficient new homes.
This transaction marks not only Caledonia's debut Private Placement but also its first source of sustainable funding.
The key objectives of the transaction were to achieve long term attractively priced funding, coupled with a flexible drawdown profile.
Caledonia was supported by NatWest to raise the profile of the association in the market and generate interest from investors.
Investors have offered 20-35 year maturities and a distinct framework of funding deferrals up to 44 months. This will allow Caledonia to draw down the funds in three tranches to meet its business plan funding requirements and provide greater certainty for future development and investment programmes.Meeting the need for high-quality social housing in Scotland
Leigh Grubb, director of finance and governance, Caledonia Housing Association said: 'Providing affordable and energy-efficient housing is central to our strategy, and the completion of this funding package is a significant milestone for Caledonia Housing Association.
'It provides an opportunity for investors to support our ongoing housing development programme as we continue to play a part in meeting the overwhelming need for high-quality'social housing in Scotland.
'We have enjoyed our close working relationship with the team at NatWest, who took the necessary time and care to fully understand and refine our specific funding objectives, before successfully matching these requirements with strong interest from a number of high-quality investors.
'This funding exercise also underlines the commitments the Association has already made to its broader sustainability agenda and we are pleased to have the support of our new investors as we set out to deliver on our key goals.'
NatWest worked closely with the organisation to help develop a Sustainable Finance Framework and acted as Sole Agent and Sole (ESG) Structuring Bank.Further reinforcing the support for the Housing Association Sector
George Flynn, financing solutions, NatWest added: 'NatWest is proud to have enabled and supported Caledonia Housing Association in achieving its debut Private Placement.
'This has enabled Caledonia to develop strong and supportive investor relationships and a funding package that is closely aligned to their business plan requirements, achieving their core financing objectives.
'Not only does this further reinforce our support for the Housing Association Sector but is demonstrable of NatWest's commitment to supporting clients in articulating their ESG (environmental, social and governance) journeys to investors.'
Source: PBC Today'