Leeds Federated Housing is a housing association with properties across Leeds, Harrogate, Wakefield and North Yorkshire.
To support its development programme, the board of Leeds Federated Housing Association approved the arrangement of a £20m long term loan facility and a £10m five-year revolving credit facility (RCF).
As the association’s retained treasury advisors, DTP worked with Leeds Federated Housing to develop the 2020/21 Treasury Annual Plan which identified a £30m funding requirement to be financed by a combination of long term borrowing, supported by a £10m short term RCF.
Working with the association, DTP prepared funding memorandums in order to create a level of competition and to provide potential lenders with the information required to put forward offers structured to meet the association’s requirements on the best terms possible. DTP benchmarked the offers to enable the board of Leeds Federated Housing to choose the most appropriate RCF and long-term funding options to meet the association’s needs and ensure value would be delivered for the association’s customers.
DTP also supported the negotiation and finalisation of terms, which involved documenting the RCF to operate on a SONIA basis and delivering long term funding at an effective rate of just 1.97%.
DTP supported the association in sourcing finance that fully met their requirements and enabled the board to approve the funding with the confidence they were delivering the best deal for the association’s existing and future customers. Leeds Federated Housing now has very low cost funding in place to support its ongoing development ambitions and enable it to continue to deliver much needed affordable housing in Leeds and the surrounding area.
Jason Ridley – Director of Finance and IT