Press Releases
- NHH Broker new financial deal with Barclays and Nationwide -
05 March 2008
North Hertfordshire Homes have negotiated a new loan facility which will provide the housing association with financial security, investment funds and significant cost saving over the next thirty years.
The new £150 million syndicated loan facility has been negotiated with Barclays Commercial Bank and Nationwide Commercial. £98 million of the new facility will repay an existing syndicated loan, with the remaining £52 million being used to fund NHH’s improvement and new build development programmes over the next three years. Following completion of the new facility, NHH was also able to take advantage of very competitive long term fixed rates.
“This will not only give us the development capital to continue with our improvement and developing plans, but provide significant cost reduction in interest payments. We estimate that these will actually reduce by approximately £2 million over the next three years. While it is not possible to accurately predict future interest rates, the negotiation of a 30 year fixed rate debt has allowed NHH to significantly reduce the cost of servicing loan debt in its 30 year business plan model. This has allowed us to plan for a minimum of 1700 new affordable homes for those most in need of low cost housing” commented Kevin Thompson, Chief Executive of North Hertfordshire Homes.
“Barclays is delighted to be able to support NHH with this refinance, which will provide the association with a strong platform to exceed their own development targets” says Craig Wilson, Relationship Director, Barclays Commercial Bank.
“We are first and foremost a relationship based lender and this deal will enable NHH to invest significantly in its development programme” said Mark Jenkins, Divisional Director, Nationwide Commercial.
