Case study

Calico Homes – Funding Strategy

Calico Homes owns and manages approximately 5,000 homes in Lancashire.


Calico Homes’ requirement was to arrange funding in order to continue their ambitious development strategy and programme of community investment.

What we did

As the group’s retained treasury advisors, DTP worked with Calico Homes to identify funding capacity and sources of finance with a level of security efficiency and covenant flexibility best suited to Calico Homes’ requirements.

DTP worked with Calico Homes to provide potential lenders with the information required, run credit assessments and provide offers based on the best terms possible. DTP benchmarked the offers and business planned the long-term effect of each alternative offer. This enabled the boards of Calico Homes and Calico Group to choose MORhomes and a restructure of existing loan facilities as the most appropriate funding option to meet their requirements on both pricing and covenant package.

In the weeks before issue, DTP provided daily pricing updates ensuring visibility of the expected effective interest rate and issue premium. This provided Calico Homes with the confidence that MORHomes would be able to raise the funds within the required parameters.

What we achieved

Calico Homes borrowed £28m, with the debt being issued at a record low spread for MORhomes of 1.54%, providing a competitively priced, security efficient long-term loan facility. As well as introducing a new funder to the association, improvements to the loan facilities with existing funders meant Calico Homes was well placed to continue its development of new properties and investment in the communities it operates in.

Andy’s technical advice and wide knowledge of funding helped us understand a complex array of options and assisted in negotiating improved terms with our existing lenders. Andy and the wider DTP team were extremely responsive throughout the process to ensure we secured the funding to a tight schedule.

Steve Aggett, Executive Director of Finance

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