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Stonewater agrees £254m funding package with five lenders

The funding will support its investment in new and existing affordable homes.

Date published: 24 April 2024

Provided by both existing funders, including Barclays, NatWest and Nationwide as well as new partners, ABN AMRO and HSBC, the new revolving credit facilities (RCFs) run for 5 to 10 years.

Through this funding process, Stonewater has optimised its financial covenant package with both new and existing funding, unlocking financial flexibility, bolstering liquidity and enhancing borrowing capability.

The housing provider, which owns and manages 39,000 homes for more than 80,000 customers in the UK, will use the funds to help deliver the three main objectives of its strategic plan.

These are to provide proactive and efficient customer-centred services, deliver quality homes and neighbourhoods, and maximise the value it provides to its customers and communities through environmental and social sustainability.

Savills Financial Consultants and law firm, Devonshires, supported Stonewater throughout the transaction.

Anne Costain, Chief Financial Officer at Stonewater, said: "Securing this new funding is not just about bolstering our financial position; it's about fortifying our commitment to creating thriving communities through high-quality, affordable homes. This milestone marks a pivotal achievement in the delivery of our strategic plan for 2030.

"These revolving credit facilities will enable us to plan and construct new affordable home developments, as well as enhance existing ones.

"Cultivating robust relationships with banks is paramount in our mission to provide affordable housing solutions, and we are deeply appreciative of the teams at Savills Financial Consultants for their invaluable financial guidance and to Devonshires for their legal expertise throughout this process."

George Flynn, Director at Savills Financial Consultants, said "We were delighted to work with the Stonewater team on this important funding package across multiple lenders, which delivers enhanced capacity to support Stonewater's future strategy."