Stonewater secures £100m in debt

Housing association Stonewater has secured £100m in funding to support plans to deliver 6,000 homes in four years. The housing provider has agreed a £75m facility from SMBC, and £25m from existing lender Nationwide. This new finance follows a business restructure from five separate registered providers to three. The SMBC loan is sustainability linked, with lower interest rates if Stonewater hits decarbonation targets. Stonewater has annual targets to plant 3,000 trees and upgrade 350 properties to EPC level C or equivalent, as well as to install 200 low-carbon heating systems. Anne Costain, director of corporate finance at Stonewater, said: “All five registered providers’ divisions had assets and loans with a combination of lenders, and this was good for flexibility at that time.” Costain added that the complex structure and bank covenants were “starting to restrict our potential”. She added: “It was the right time to address this by restructuring and now allows us to present a clearer picture to investors and access funding more efficiently.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette