Landlord secures multi-million pound funding facility

One of the UK’s major social housing providers has secured a $150m (£115m) funding facility to help drive its housing development programme.

Stonewater completed the facility from US firm Pricoa Capital Group and can issue the notes at any time over the next three years with a choice of maturities.

The 30-home landlord, which is aiming to build 2,765 homes by 2021, will initially issue £100m, with a maturity of 30 years and a weighted average life of 28. The all-in coupon rate on the drawdown was under 3.1 per cent. While the size of the facility is set in US dollars, Stonewater issues in sterling and takes on no currency risk.

According to the housing provider, the facility is set to provide “a secured source of cheap, long-dated funding with the added benefit of offering a potential source of further liquidity in the future at short notice”.

Pricoa Capital Group is the principal asset management arm of US financial services group Prudential Financial. TradeRisks acted as arranger and advisor to Stonewater, with Devonshire’s LLP and Morrison & Foerster (UK) LLP acting as legal advisers.