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New Partnership Launches To Strengthen Housing Sector’s Investor Relations And ESG Communications
A new partnership has been formed to help housing providers and companies across the built environment deliver on the environmental,...
New partnership launches to strengthen housing sector’s investor relations and ESG communications
A new partnership has been formed to help housing providers and companies across the built environment deliver on the environmental, social and governance (ESG) agenda.
Communications agency, Social and corporate finance advisory firm, Newbridge Advisors have come together to support organisations with their ESG reporting and storytelling.
As the ESG and sustainability agendas move further into the mainstream in the financial sector, housing associations and companies are increasingly required to demonstrate their environmental and social performance.
Having recognised their compatibility, shared values and objectives, based around delivering high quality services and advisory to housing associations of all sizes across Great Britain, Social and Newbridge will offer clients an end-to-end service.
Social’s expertise lies in communications, and its specialist division, Social Invest, will provide strategic and practical support on the formation and delivery of ESG communication plans, reports, presentations and other materials.
Newbridge, which already provides investor relations services to several housing associations, offers technical advisory support around ESG frameworks and financial modelling, as well as investor relations services.
Whilst ESG primarily provides funders with a measurable and comparable way to assess performance and material risks relating to sustainability, it is also a powerful way of channelling and communicating what matters to an organisation to a wider audience.
Luke Cross, director at Social Invest, and former editor of Social Housing magazine, says: “Many people across housing say the sector doesn’t always tell its story as well as it could. ESG is an opportunity to do just that. We hope to support the sector in helping housing providers strike the right chord with the right people.
Along with embracing a standardised sector-wide reporting approach, every housing association has its own story to tell, and it’s critical that it does this well when engaging with funders and other key stakeholders.”
Chris Evans, director at Newbridge Advisors, says: “So many housing associations have such a positive story to share in relation to ESG, structuring the communication in a format recognised by the financing community is the next stage in bringing the two together.
“It has never been more important to describe how proceeds will be used when arranging new funding.”
The partnership aims to simplify and smooth out the process for HAs, connecting strategy with technical support and communications.
Luke adds: “Newbridge already has extensive expertise and knowledge in investor relations and ESG disclosure. By working together in this area, we’ll add value by aligning that expertise with specialist communications, offering a complete service that delivers value and desired outcomes.”
The Newbridge partnership follows Social Invest’s appointment of Kim Goodall as a consultant. Kim spent eight years at what became Aberdeen Standard Investments, working across global ESG implementation and strategy. She also has a background in communications and marketing.
Optivo Successfully Raises C£150 Million Of Deferred Funding
Newbridge has once again supported the housing associations sector in an innovative deferred funding exercise, this time for Optivo, who...
Optivo successfully raises c£150 million of deferred funding
Newbridge has once again supported the housing associations sector in an innovative deferred funding exercise, this time for Optivo, who successfully raised c£150 million for settlement in 18 months. The transaction helps de-risk the business plan and further supports Optivo’s core aspiration in providing much needed social housing to its community.
With a strong short-term liquidity position, bolstered further by securing access to the Covid Corporate Financing Facility (“CCFF”) in May this year, Optivo’s treasury strategy has focussed on longer term funding, particularly given the current favourable market conditions.
Optivo have also undertaken extensive work on its credit positioning in recent months, alongside its newly revamped investor relations website and issuing its first ESG report and looked towards this transaction as a way to capitalise on the recent strong performance of Optivo’s credit spreads.
The transaction structure offered three key benefits to Optivo:
1) The 18-month deferral, at a credit spread inside of its secondary curve, provided a significant cost of carry saving versus an immediately drawn bond issue
2) Increasing the size of the 2043 bond to “benchmark” (£250m plus), the liquidity in the secondary market should improve as a result of it becoming eligible to index funds
3) Raising £150m of proceeds against a nominal value of £100m, the secured transaction offers Optivo security charging efficiencies
This excellent result demonstrates the strong positioning enjoyed by Optivo within the capital markets and reaffirms its long-term strategic plan is understood and supported by bondholders.
Bromford Completes Second Deferred Deal In Two Months
Newbridge were delighted to recently support Bromford with two deferred funding transactions in 2020. In July, Bromford finalised a £90m...
Bromford completes second deferred deal in two months
Newbridge were delighted to recently support Bromford with two deferred funding transactions in 2020.
In July, Bromford finalised a £90m deal with a leading UK investor, at a record low coupon despite it being deferred for 18 months. The funding will be used to finance its ongoing housebuilding programme which aims to deliver 12,000 homes over the next eight years.
It’s the latest in a string of successful funding transactions for the Midlands-based provider, and the second long-dated deferred deal Bromford have entered into since the onset of Covid-19. The deal follows the £100m private placement agreed with LGIM which will be drawn in May 2021 and brings its total funding activity in the last two years to over £1bn.
Head of Treasury Imran Mubeen said: “We remain absolutely committed to our strategy of developing more homes to meet this country’s growing demand for social and affordable housing. We have continued to stress test our cashflow and business plan to reflect new Covid-19 scenarios, all of which confirmed that we require new funding in early 2022.
“These deferred funding deals deliver certainty on the availability of future funding at record low rates and allow us to approach our future development objectives with confidence. We have long established several routes to market and have once again mobilised quickly to lock in our record low coupon with an established investor who endorse our business plan and the understand way we work."
Grant Vaughan, a Partner at Newbridge Advisors who advised on the transaction said: “Once again Bromford have demonstrated how a nimble and proactive treasury strategy can yield fantastic results and de-risk the business plan. Taking advantage of the current market conditions has locked in significant value for the group.”
Newbridge Adds Social Housing Treasury Capability
Newbridge is pleased to welcome Chris Evans, who has joined as a Director from the DCM team at Lloyds Bank....
Newbridge adds Social Housing Treasury Capability
Newbridge is pleased to welcome Chris Evans, who has joined as a Director from the DCM team at Lloyds Bank.
Newbridge Appointed To Government-wide Corporate Finance Advisory Panel
Newbridge is delighted to have been appointed to the Crown Commercial Service (or CCS) - Corporate Financial Services Framework Two...
Newbridge appointed to government-wide corporate finance advisory panel
Newbridge is delighted to have been appointed to the Crown Commercial Service (or CCS) - Corporate Financial Services Framework Two (RM6169) Lot-6 Corporate finance infrastructure.
This offers the provision of advice to Government Departments, Local Authorities, NHS Trusts, Non-Departmental Public Bodies, Arm’s Length Bodies and Agencies, across England, Northern Ireland, Wales and Scotland.
Newbridge Advises I-4 Mobility Partners Regarding $125m Project Amendments To Their $2bn Project
The I-4 Ultimate Project consists of the reconstruction, improvement, and addition of new express lanes to the I-4 in Florida....
Newbridge advises I-4 Mobility Partners regarding $125m project amendments to their $2bn project
The I-4 Ultimate Project consists of the reconstruction, improvement, and addition of new express lanes to the I-4 in Florida. The shareholders, Skanska and John Laing, reached financial close on the $2bn project in 2014.
The project is currently in construction and I-4 Mobility Partners and the Florida Department of Transportation agreed several amendments to optimize the delivery programme.
On behalf of I-4 Mobility Partners, Newbridge developed a bespoke model to analyse multiple scenarios of the revised contract and complex timetable amendments and provided analysis of the consequences.
Newbridge Advises The Guinness Partnership On Retained Bond Sale And £400m New Bond Issue
Over the last 12 months, Newbridge have worked with The Guinness Partnership to establish and implement the most appropriate funding...
Newbridge advises The Guinness Partnership on retained bond sale and £400m new bond issue
Retained Bond Sale
- Having received a reverse enquiry from an investor, this was flagged to Guinness and an attractive proposal was discussed
- Assisted in the structure (deferred settle), documentation, process co-ordination and of course pricing
- Sale was completed with a minimal new issue concession
New Bond Issue
- Guinness issued a £400 million 35-year bond with a coupon of 2.0%
- The timing was important as this was completed almost at the height of the COVID-19 related market volatility. Careful navigation and strategising was necessary
- Newbridge worked with the team at Guinness and helped navigate them through this unprecedented market volatility
Obituary: Jeremy Froud
We are shocked and saddened by the recent passing of Jeremy Froud, a Partner at Newbridge Advisors. Our sincere condolences...
Obituary: Jeremy Froud
We are shocked and saddened by the recent passing of Jeremy Froud, a Partner at Newbridge Advisors. Our sincere condolences go out to Jeremy's family, friends and colleagues, he will be missed greatly.
Jeremy was well known as a veteran of the UK bond markets having worked at Barclays for 28 years and built a world class UK bond business. His achievements are too many to list, but particular highlights would have been his role establishing the whole business securitisation structure for UK utilities and structuring the first UK corporate hybrid transaction. Jeremy was also incredibly well known in the social housing sector as someone who always delivered for his clients.
During his time at Newbridge, Jeremy made an invaluable contribution to the team and the business. His kindness, generosity, unrivalled intelligence and quick wit is going to be missed by us all.
Newbridge Advises Anglian Water On Large-scale Solar Procurement
The water sector in England has made a public commitment to be net zero carbon by 2030. Newbridge Advisors, as...
Newbridge advises Anglian Water on large-scale solar procurement
Link’s Development Programme Bolstered By Innovative Financing
Affordable housing provider, Link Group Ltd has recently secured £50 million 20-year funding with the support of Newbridge Advisors. The...
Link’s development programme bolstered by innovative financing
Affordable housing provider, Link Group Ltd has recently secured £50 million 20-year funding with the support of Newbridge Advisors.
The funds, which have been structured with the benefit of a financial guarantee provided by Assured Guaranty (Europe) plc and its affiliate Assured Guaranty Municipal Corp. (together referred to as Assured Guaranty), have been provided by Canada Life.
Neil Hall, Link Group Director of Finance and Corporate Services, commented: “We are delighted to have secured this funding to support our significant development programme.
“In line with the Scottish Government’s commitment to building more affordable housing, we have an ambitious development programme and this funding package will help us to deliver these homes.
“Link is a financially robust group and we need to ensure any financing we secure is reflective of our strong credit profile.
“Cost and certainty of funding were our two key areas of focus, and this financing, structured by Newbridge Advisors, delivered on both.”
The Notes have been rated AA by S&P Global Ratings, in line with Assured Guaranty’s financial strength rating, which offers significant capital benefits to certain investors under Solvency II. On this basis, this transaction was able to offer significant value to Link in terms of all-in funding costs.
Grant Vaughan, Partner at Newbridge Advisors, said:
“This financing structure is designed to offer pricing benefits to a number of social housing providers. We are thrilled to have completed this transaction for Link, at pricing which is tighter than what was being offered in the broader market. We are pleased to have been trusted by Link to work together to demonstrate the effectiveness of this financing structure. “
David Marchant, Chief Investment Officer at Canada Life Investments said:
“We are delighted to enter into this transaction with Link Group. We have a long track record lending to the social housing sector providing a variety of funding solutions and look forward to working with Link and Assured Guaranty over the term of this private placement.”
Newbridge Advises On Homes England Loan For Swan Housing
Newbridge Advisors supported the Swan Housing and Homes England teams on financing a £170m mixed use development in Basildon. More...
Newbridge Advises on Homes England loan for Swan Housing
Newbridge Advisors supported the Swan Housing and Homes England teams on financing a £170m mixed use development in Basildon.
More than 760 new homes and almost 8,000 square metres of retail and commercial space are being built in Basildon following a £30 million funding boost from Homes England.
The loan from the government’s housing delivery agency will help to redevelop the Craylands Estate, renamed as Beechwood Village, and the Laindon Shopping Centre, which will become Laindon Place.
More than 550 new homes are being built at the Beechwood site, including up to 110 affordable homes, whilst 210 homes and over 7,000 sq m of commercial space will be developed at Laindon.
The funding will allow Swan Housing Association, who are working in partnership with Basildon Borough Council, to develop both schemes at the same time, enabling the final three phases of regeneration at Beechwood Village and new homes at Laindon shopping centre to be completed more quickly.
When completed, Laindon Place will include a new high street with shops, a supermarket, and a new health centre. The new homes to be built at Beechwood Village will be in addition to more than 400 homes, retail units and community centre completed in earlier phases.
Homes England has agreed the loan as part of its £290 million Estates Regeneration Fund, which offers finance to kick-start and accelerate the regeneration of estates.
Almost all the homes will be built off site at Swan’s factory in Basildon, using pre-manufactured modular construction techniques.
Minister of State for Housing, Kit Malthouse MP, said:
“This funding not only supports more than 760 much-needed new homes, but further strengthens a community that residents can be proud of through new commercial and civic spaces for the people of Basildon.
“It’s all part of how this Government is supporting the delivery 300,000 new homes a year by the mid-2020s, helping a new generation to realise the dream of home ownership.”
Sir Edward Lister, Chairman of Homes England said: “The Beechwood Village and Laindon Place regeneration projects are key priorities for Basildon and we’ve worked closely with Swan Housing Association to ensure the new homes local people need can become a reality.”
“Homes England strongly supports the use of modern methods of construction (MMC) as a means of delivering good quality homes at pace, so it’s great to see these methods being used to build better homes faster in Basildon.”
It’s anticipated that work at both sites will be completed by autumn 2024.
Geoff Pearce, Executive Director – Regeneration and Development of Swan Housing Association, said:
“Swan Housing Association and our long-term partner, Basildon Borough Council, are delighted to receive this funding boost from Homes England. It will enable us to build much needed high-quality homes, more quickly, at both Beechwood Village and Laindon Place. These homes will be built both using our state-of-the-art modular factory in Basildon and by traditional methods of construction. This partnership helps Swan towards our ambitious target of building an additional 10,000 homes by 2027 and Basildon towards its strategic growth goals for the Borough.”
University Of Brighton Student Accommodation
Newbridge Advisors has advised Uliving on winning and achieving Financial Close on a new student accommodation project at University of...
University of Brighton Student Accommodation
Newbridge Advisors has advised Uliving on winning and achieving Financial Close on a new student accommodation project at University of Brighton. The five new towers at the Moulsecoomb campus, ranging in height from 8 to 18 floors, will provide over 800 affordable student bedrooms and space at ground level for new Students’ Union and fitness facilities. The visually striking development is being built on the site of the university’s Mithras House car park and is due to be ready for students starting courses from September 2021.
University of Brighton Vice-Chancellor, Professor Debra Humphris said: “This is a huge milestone as work begins on the next stage of the university’s biggest ever capital development programme. The new student accommodation and other facilities that form part of the Big Build will transform our biggest campus.”
Development partner Uliving is taking on the financing, development and management of the new student facilities with a 50-year operating term. Its investment partner is John Laing and Aviva Investors’ Lime Property Fund is providing long-term development finance through an income strip deal. The development will be delivered by construction company Bouygues UK, and Bouygues Energies and Services will be in charge of facilities management. Axel Boutrolle, Uliving’s CEO, said: “We are excited to be working with the University of Brighton to bring its ambitions to life. The Moulsecoomb campus will boost the availability of modern, high-quality, purpose built student accommodation in this vibrant city, freeing up homes for local families”.
1,500 Homes For The Olympic Park
Newbridge has advised a joint venture of Places for people and Balfour Beatty on winning and reaching Financial Close on...
1,500 Homes for the Olympic Park
Newbridge has advised a joint venture of Places for people and Balfour Beatty on winning and reaching Financial Close on the first phase of the development of 1,500 new homes on the Queen Elizabeth Olympic Park, with debt funded by Homes England.
Investment will help create two new neighbourhoods at Stratford. More than 40 per cent of homes in the first phase of the development will be affordable. The development includes schools, business and commercial space.
More than 1,500 new homes, including 450 affordable homes, will be created across the two communities, which will be known as East Wick and Sweetwater.
Schools, green spaces, business and creative space, leisure and community facilities will also be developed at the two sites.
Homes England have agreed a £78 million loan to fund the first four phases of the scheme, being developed on land owned by the London Legacy Development Corporation (LLDC).
Housing Minister Kit Malthouse MP said:
“We have not built enough homes in the capital over the last 30 years, and it’s ordinary Londoners who are paying the price.
“Brick-by-brick we are turning that around and this investment in the Queen Elizabeth Olympic Park will help get more than 1,500 properties built.”
It is anticipated that the first phase of the development will be completed in summer 2021, with work at East Wick and Sweetwater being fully completed by 2028.
Sir Edward Lister, Chairman of Homes England added: “Homes England is committed to helping ambitious partners build quality homes at pace, in the areas of greatest need.
“We’re delighted to be supporting Balfour Beatty Investments and Places for People to create the homes and neighbourhoods people in London deserve.”
Newbridge Supports A2Dominion On An Innovative £75m Unsecured Deferred EMTN Transaction
A2Dominion Housing Group Limited have agreed £75 million of unsecured funding, issued off its EMTN Programme, with settlement deferred to...
Newbridge supports A2Dominion on an innovative £75m unsecured deferred EMTN transaction
A2Dominion Housing Group Limited have agreed £75 million of unsecured funding, issued off its EMTN Programme, with settlement deferred to March 2022. The 20-year bonds are priced with a fixed coupon of 4.25% and as such remove any market risk over what is undoubtedly going to be a volatile period.
Newbridge Advisors worked closely with A2Dominion to understand their funding requirements and sourced the liquidity from BAE Systems Pension Fund. The transaction is designed to minimise any refinancing risks in relation to A2Dominion’s £150m retail bond (at a coupon of 4.75%) maturing in October 2022, whilst avoiding any associated cost of carry.
Dean Tufts, A2Dominion’s Executive Director (Finance & Strategy), said “We were very pleased to secure this long-term funding which further demonstrates the prudent financial strategy we have in place. The certainty of this funding will enable us to continue our focus to deliver high quality homes and invest in local communities.”
Devonshires provided legal advice to A2Dominion Housing Group Limited, with Allen & Overy LLP providing legal advice to BAE Systems Pension Fund.
Newbridge Advises Southern On £300m Bond Issue
Newbridge advised Southern Housing Group issued a £300m (incl £100m retained) 29-year secured bond issue at Gilts +158 basis points,...
Newbridge advises Southern on £300m bond issue
Newbridge advised Southern Housing Group issued a £300m (incl £100m retained) 29-year secured bond issue at Gilts +158 basis points, offering a coupon of 3.50%. Primary lead for Newbridge was Grant Vaughan who has extensive experience in structuring and executing bonds and private placements for housing associations.
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