Notting Hill Home Ownership Receives Japanese Yen Unsecured Investment
Notting Hill Home Ownership (NHHO), rated AA (stable) by Standard & Poor’s, has today received a loan of 5bn JPY (equal to £28m) from a Japanese investor. NHHO is the shared ownership subsidiary of the Notting Hill Housing group.
The 12 year loan was coordinated by TradeRisks. The loan and its sterling equivalent was priced on 9 April at 2.975%, equivalent to the underlying gilt rate plus a margin of 119bp. NHHO entered into a cross currency swap whereby the full currency risk on the yen loan was hedged with virtually no credit risk on the swap counterparty. The loan and the swap are senior unsecured obligations of NHHO.
Notting Hill’s Group Finance Director, Paul Phillips said, "We are delighted that we have been able to obtain this finance - which was priced at a similar margin to public secured bond issues. We have the largest allocation for new shared ownership homes from the GLA and this will help finance our acquisition and construction of new homes. Although the 12 year term is shorter than is usual for Registered Providers, it matches very well to our forecasts, given the shorter duration of the shared ownership product. The new loan will assist in supporting NHHO’s mission of providing shared ownership homes for Londoners who could otherwise not afford to buy on the open market.”
Antoine Pesenti, Managing Director at TradeRisks said, “We are pleased to have helped Notting Hill to open up a new source of capital at a very tight spread”
For further information contact Antoine Pesenti from TradeRisks at +44 (0) 20 7382 0906
Notes to editors
TradeRisks is an FCA regulated corporate finance and risk management firm providing independent advice, financing and risk solutions to UK and international groups within the essential services, infrastructure and public sectors.
NHHO is the largest provider of shared ownership homes in London with over 5,000 shared ownership homes across the capital. It is a social enterprise with the purpose of providing homes for those who could not otherwise afford them.
Founded in 1981 as Addison Housing Association NHHO now has assets worth more than £400m, has an annual turnover of more than £160 million and has offices in London at King's Cross and Hammersmith.