Merthyr Tydfil Housing Association completes £9m capital market fundraising to restructure existing debt and support the delivery of around 200 new affordable homes by 2025.
Merthyr Housing finances its growth through a combination of grant, surplus generation and private finance from banks and other sources. It is therefore important for them to be able to attract private finance which is competitively priced and flexible, supporting the delivery of our long term business plan and managing the associated treasury risks.
Following a review of their treasury position (existing private finance) MTHA embarked on implementing the resultant strategy and this has now been successfully concluded. New finance has been obtained from the capital markets, via bond aggregator THFC, with the proceeds of c.£9m to be utilised to enable restructure of existing bank debt and to support our ongoing growth plans.
The restructure of MTHA’s existing bank debt provides more efficient funding and importantly greater flexibility, enabling us to do more in the future.
The funds raised will be used as part of Merthyr Housing’s growth strategy to increase their provision of affordable homes by almost 200 units by 2025.
Samantha Taylor, Director of Corporate Services – Merthyr Tydfil Housing Association
“Finalising the treasury strategy will allow the Association to deliver on it’s objectives. Securing new funds at such a great rate with THFC and restructuring and simplifying existing treasury arrangements, will allow us to support our ambition to grow, invest in our stock and enhance the services we provide tenants. Centrus advised on the transaction and provided an excellent service throughout”
Karen Courts, Chief Executive – Merthyr Tydfil Housing Association
“The Board and Executive are delighted to have successfully delivered on the treasury strategy with such excellent outcomes, enabling us to deliver more affordable homes within the borough of Merthyr Tydfil. We are pleased to welcome THFC as a new funding partner, and appreciative also of the continued support from our existing bank lenders.”
Centrus, the leading specialist treasury advisory to the housing sector, was engaged to develop and implement the treasury strategy.
Paul Stevens, Executive Director – Centrus
“Merthyr Housing is a great example of very locally focused organisation delivering much needed housing and support services to the community it serves. Its ability to obtain finance on attractive terms from a range of banks and THFC provides testament to the strengths of Merthyr Housing. Successful implementation of the strategy means Merthyr Housing has a more robust treasury platform to underpin the long term business plan.”
THFC, the capital markets bond aggregator, has become a new funding partner to Merthyr Housing
Piers Williamson, CEO – THFC
“We are delighted to be able to welcome Merthyr Tydfil to the THFC Group. Merthyr Tydfil are a shining example of the good that housing associations do for their tenants and communities, and as the largest mutual lender to housing associations THFC is proud to enter into this new long-term relationship to deliver more quality and affordable homes.”
Barclays Bank is a longstanding funding partner and the largest bank lender to Merthyr Housing.
Richard Whittaker, Relationship Director – Barclays
“We are pleased to be able to continue supporting MTHA through the next phase of its refinancing strategy, with the continuation of term loan and revolving credit facilities. This deal further underlines our ongoing commitment to the UK housing sector, and we look forward to working closely with the management team to help this ambitious housing association achieve its objectives over the coming years.”