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Bromford Establishes Its Inaugural Sustainable Finance Framework

Newbridge has supported Bromford Housing Group (Bromford) in launching its inaugural Sustainable Finance Framework, helping to measure the impact of...

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Bromford establishes its inaugural Sustainable Finance Framework

Newbridge has supported Bromford Housing Group (Bromford) in launching its inaugural Sustainable Finance Framework, helping to measure the impact of up to a billion pounds in ESG-linked funding over the next decade. The framework opens the door for Bromford to formally categorise capital markets debt as green, social or sustainable and complements its commitment to tackling some of the biggest environmental social and governance challenges of our time. The framework also represents a furthering of Bromford’s already strong levels of ESG transparency and accountability. To confirm full alignment with a set of industry standards, it received a second party opinion from S&P global ratings, their first in the social housing sector. Imran Mubeen, Director of Treasury at Bromford: "We are delighted to have published our Sustainable Finance Framework, a very important milestone in our ESG journey. From inception to accreditation, Newbridge provided dedicated support, advice and expertise, to a standard which we have come to expect. We have developed a long-standing relationship with Newbridge and look forward to working together again in the future.” Chris Evans, Director at Newbridge Advisors commented: “Establishing a framework is an important signal to the capital markets community that future finance, whilst not exclusive, is likely to be linked to ESG. A framework is expected to be a fluid document, it will flex to align with the future strategy of the organisation, new industry standards and potential regulation as and when it emerges. Bromford has managed to strike a great balance with its framework. Not only does it meet the disclosure requirements expected by the market, it communicates a story original to the organisation, reflective of why they are so well regarded with investors."  

Newbridge Advises Balfour Beatty Appointed As Preferred Bidder For Royal Holloway Campus Expansion Project

Balfour Beatty, advised by Newbridge Advisors LLP, has announced that it has been appointed as preferred bidder by Royal Holloway,...

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Newbridge Advises Balfour Beatty appointed as preferred bidder for Royal Holloway campus expansion project

Balfour Beatty, advised by Newbridge Advisors LLP, has announced that it has been appointed as preferred bidder by Royal Holloway, University of London, for the development of a student village at Rusham Park in Egham, Surrey. In partnership with Royal Holloway under a fifty-year concession contract, Balfour Beatty will design, build, finance and operate, alongside Student Living by Sodexo, a new 1,400 room student village at Rusham Park. In addition, the company will operate the existing 621-bed George Eliot student accommodation complex in London. Balfour Beatty Investments will invest 85% of the equity to finance the project with Royal Holloway investing the remaining 15%. Bringing together expertise from across the Group, Balfour Beatty’s UK Construction Services business will be responsible for the construction of the new student village at Rusham Park. As part of the c.£130 million design and build phase, Balfour Beatty will deploy modern construction methods such as the offsite manufacturing of the external walls, floors and bathroom pods, to improve health and safety and reduce the overall project duration. To support Balfour Beatty and Royal Holloway in achieving their bold and ambitious net-zero carbon targets, energy efficient systems, such as air source heat pump technology, will be deployed throughout the build. On completion, the project will form a critical part of the University’s plan to provide affordable but high-quality living, social and amenity spaces for its growing student population. Ion Appuhamy, Managing Director of Balfour Beatty Investments, said: “We are delighted to be appointed as preferred bidder and to work in partnership with Royal Holloway. Our appointment to deliver the student village development at Rusham Park demonstrates our ongoing success in the student accommodation market. “We are well-placed to support Royal Holloway with their ambitions, providing an integrated design, build, finance and operations offering which will ensure the seamless delivery of this essential and sustainable project.” Michael Berry, Director of Estates for Royal Holloway, University of London, added: “We are very pleased to be able to announce Balfour Beatty as our preferred bidder for the development of the Rusham Park student village. “Our goal is to continue to evolve our campus, developing the services and facilities we offer in order to enhance the student experience and create the optimum environment for student success.” With financial close anticipated in early 2022, construction is due to commence shortly thereafter with completion scheduled ahead of the 2024/25 academic year.

CHP Taps Its 4.750% 2043 By £50m

Newbridge advised Chelmer Housing Partnership (“CHP”) tap its existing 4.750% Dec-2043 bond by £50m. Established in 2002 to deliver its...

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CHP taps its 4.750% 2043 by £50m

Newbridge advised Chelmer Housing Partnership (“CHP”) tap its existing 4.750% Dec-2043 bond by £50m. Established in 2002 to deliver its core social purpose of meeting housing need by providing homes for rent and sale, the Essex based housing association owns or manages over 10,500 homes and provides services for over 25,000 customers. The tap was sold at a significant premium to par resulting in CHP receiving an additional circa £19m to invest versus security pledged against the borrowing. Proceeds will be used to support the delivery of 500 much needed affordable homes across the eastern region. Following a competitive tender exercise, CHP appointed a single bookrunner (Barclays) to explore funding options. Paul Edwards, Deputy Chief Executive and Chief Financial Officer said: “We’re thrilled with this result, as the financing will enable us to continue with our ambitious commitment to deliver 365 new homes a year. “As we recover from the coronavirus pandemic it’s never been more important to address the shortfall of affordable housing in our region, and we have bold plans for the future. We will continue to invest wisely so we can play our part in providing great quality homes that people can feel proud to live in.” Chris Evans, Director at Newbridge Advisors commented: “It is a tremendous outcome and this important financing milestone supports the underlying mission at CHP of transforming lives. Increasing the size of the bond to £250m improves its liquidity, a key factor for driving down the cost of future capital market activity.”

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,...

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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, 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...

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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...

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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....

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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.
The appointment represents significant further growth of the Newbridge social housing and structured bond franchise.  During his 10 years at Lloyds, Chris led a number of innovative structures within the social housing and structured bond sectors and will bring expertise in Capital Markets alongside Treasury Management and Environmental, Social & Governance ("ESG").
Reflecting on the appointment, Newbridge Advisors Partner Grant Vaughan said "We are delighted to have Chris joining the team at Newbridge. We have made great progress in positioning Newbridge as a trusted advisor within the social housing sector and Chris is a fantastic addition to solidify and expand this offering."

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...

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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....

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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...

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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 strategy to further their ambitions to provide more low cost housing to tenants in England.The funding strategy contemplated funding requirements; sequencing; and of course the best sources of funding. As Guinness had Retained Bonds from their 2044 Bonds, it was important to consider the sale of these bonds in the context of a larger new public bond issuance.  

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
This transaction highlights how the Newbridge team can add extensive value at each stage of a transaction's development, from the initial planning through to successful execution. It is never certain what issues may arise throughout the life of a transaction, and we look forward to leveraging our experience to assist other social housing clients as they consider their future funding strategies. For further information, please contact Grant Vaughan, Partner.

Obituary: Jeremy Froud

We are shocked and saddened by the recent passing of Jeremy Froud, a Partner at Newbridge Advisors. Our sincere condolences...

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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...

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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 strategic, commercial and financial renewables advisors, worked with Anglian Water to established a solar and energy storage framework comprising experienced investors to enable it to achieve the 2030 goal. Newbridge also advised Anglian Water prior to the award of the first project under the framework – an agreement with one of the framework partners to design, operate and own over 35MW of solar assets and sell power directly to Anglian Water through a private wire PPA for a 25-year period. David Riley, Anglian Water’s Head of Carbon Neutrality said “We never stop looking for ways to improve what we do, to keep us ahead in a changing world, and our renewables ambition will see us integrate solar and energy storage to help us in our journey to becoming a more sustainable business. “Ours is the driest region in the UK, particularly vulnerable to climate change and one of the fastest growing parts of the country. “As we tackle these challenges, we are working hard to reduce our carbon footprint including increasing the amount of renewable energy we generate to help power our operations.” Jeremy Froud, Partner at Newbridge Advisors said “We are thrilled to have helped Anglian Water establish this approach to find a partner to ultimately deliver its current on-site solar ambitions whilst also identifying a framework of credible investors that will, over time, create useful relationships, essential in such a fast evolving sector for future projects, that can only help the organisation reach its net zero carbon goals. “Newbridge was ideally placed to support Anglian Water: the team’s water industry expertise, renewables experience and in-depth knowledge of the underling investor base, combined with our experience of achieving best value, meant Anglian Water could always be confident they were running a highly competitive process that was focused on delivery as well as pricing.”

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...

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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...

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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...

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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”.