Rearranged funding secures Karbon Homes’ commitments
Affordable housing provider Karbon Homes has secured new funding from Savills Financial Consultants to help it meet its strategic objectives.
Karbon’s footprint covers the North East of England and Yorkshire, with more than 34,000 homes in its portfolio.
Savills Financial Consultants (SFC) has supported Karbon in securing new funding and optimising its treasury portfolio, unlocking significant capacity to deliver its strategic objectives.
As part of its package, the housing association has renegotiated a range of improved terms across £235m of its funding facilities with four of its existing funders, including a new 10-year, £54m loan agreed with NatWest generating significant interest savings of more than £3m.
Karbon said that following the arrangement, it is on track to deliver the commitments in its 2024-29 ‘Stronger Foundations’ strategic plan, which includes being financially strong to maximise investment in existing and new homes.
Scott Martin, executive director of resources at Karbon Homes, said: “We’re very pleased with the result of this recent financing review, which will ensure our investment in our existing homes, our commitment to building new, affordable homes and our continued delivery of valuable work across communities, is supported by our funding structures.”
George Flynn, director at SFC, said: “We are really proud to have supported Karbon through these critical negotiations in order to optimise and simplify its financing structure and to unlock significant financial capacity. We look forward to continuing to support Karbon in the future as they continue to deliver their ambitious strategy.”
The new funding package includes renegotiations with four existing funders, including NatWest, Lloyds Bank, Santander UK and the private placement investor.
The financial adviser on the deal was Savills Financial Consultants, the client legal adviser was Trowers & Hamlins and the funder legal adviser was Addleshaw Goddard.
