Karbon Homes has completed a £235m refinancing and secured new funding of £54m.
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 with NatWest, generating interest savings of more than £3m.
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. The excellent outcome reflects the great partnership working throughout, with all parties taking the time to fully understand Karbon as a business and our key objectives and working quickly and effectively together to deliver a collectively beneficial outcome.”
Andrew Thompson, assistant director: treasury at Karbon Homes, added: “We are very much pleased with the result and I am incredibly proud of the treasury team helping drive business improvement, future sustainability for the organisation and ultimately feeding through to better services to our customers. The collaboration with SFC on this has been outstanding. The team have been responsive, delivered reports and analysis and worked closely with our board and management team to deliver an excellent set of outcomes.”
George Flynn, director at Savills Financial Consultants (SFC), which supported Karbon Homes on the debt restructure, said: “Working with the Karbon team on this exciting, innovative and important process has been brilliant. 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.”
