Sovereign Housing has secured a £250m revolving credit facility from a syndicate of five lenders led by Natwest.
The housing association has agreed the three-year loan from Natwest, Lloyds Bank, Mitsubishi UFJ Financial Group, National Australia Bank and Sumitomo Mitsui Banking Corporation.
The loan is Sovereign’s first unsecured borrowing. It said the credit will provide it with “financial security through a potentially uncertain political and economic period”.
Sovereign is seeking to raise long-term finance to take land-led developments, with a goal to deliver 1,900 new homes a year.
Barry Nethercott, Sovereign’s chief financial officer, said: “We have an ambitious strategy to take control and build more affordable homes, to invest more in our existing properties and communities, and to become leaders in customer service.
“To achieve this we need the fast and flexible access to finance offered by this new deal in order to keep building much-needed affordable homes through potentially uncertain times ahead.”
Sovereign Housing was advised by Centrus.
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