Greatwell Homes – New Funding

Greatwell Homes is a not-for-profit housing association, set up to meet the housing needs of people in Wellingborough and the surrounding areas.

Objective

We were appointed to support Greatwell Homes in securing additional borrowing to fund investment in its existing homes and to continue its programme of developing much-needed housing in Northamptonshire, including its flagship Dappletree Court extra care scheme.

What we did

DTP worked with Greatwell Homes to procure funding offers from a range of potential lenders, with the aim of meeting its forecast borrowing requirement and supporting the effective management of treasury risks.

We analysed and modelled the offers received and, working closely with officers, presented the available options to the Funding Committee to enable informed decision-making on the preferred funding solution.

In addition, DTP supported both officers and the Committee in agreeing an approach to hedging variable interest rate exposure.

What we achieved

Greatwell Homes successfully arranged £70m of new loan facilities, comprising a £45m revolving credit facility from Barclays Bank, an existing lender, and a £25m long-term loan from NatWest Bank, a new lender to the organisation.

The funding secured met the primary objective of ensuring Greatwell Homes is fully funded for the next five years, supporting continued investment in existing homes and the development of new housing.

In addition to removing short-term refinancing risk, the new facilities reduced the forecast cost of funding and positioned the organisation to effectively manage its exposure to interest rate risk.