MUFG has closed a £50 million Revolving Credit Facility (RCF) with Network Homes.
The 2-year RCF will be followed by a take-out from BAE Systems Pension Funds Investment Management in the form of 32 and 34-year £50m private placement notes. This deal provides Network Homes with a flexible short-term funding solution whilst at the same time meeting its long-term funding needs for core assets.
MUFG acted as Mandated Lead Arranger, Private Placement Note Arranger and Agent.
Sanjay Narbheram, Director of Housing Finance at MUFG said:
"We are very pleased to be able to support Network Homes by financing and structuring this innovative facility. This is a great example of MUFG leveraging our market-leading debt capital markets structuring capabilities and building upon our established relationships with a wide universe of institutional investors. This represents the first private placement completed by MUFG in the social housing sector, replicating similar success that we have had in the wider project finance arena."
Barry Nethercott, Executive Director of Finance & Deputy Chief Executive for Network Homes said:
"We are very pleased to start this new relationship with MUFG and BAE, who have shown a good understanding of Network's funding requirements and have provided an innovative solution."
Jon-Paul Phillips, Portfolio Manager at BAE Systems Pension Funds Investment Management added:
"We are delighted to be providing long term financing for Network Homes. Network Homes is an excellent association and we look forward to building a strong, long term relationship with the organisation.
This transaction also reflects the innovative and flexible way we aim to support the sector; in this case providing deferred funding in partnership with MUFG's short term funding."
Network Homes is one of the largest Housing Associations in London and the Home Counties, with over 20,000 units under management, spread across 36 local authorities.