Peabody Trust accesses £125m Private Funding Facility
Peabody Trust (“Peabody”) has signed a £125 million funding facility to support its liquidity position and the development of new housing in London.
Peabody will initially issue £10m of notes from the facility, with the ability to issue the remaining notes at any time over the next 3 years with a choice of maturities up to 20 years - unlike a bank facility there is no commitment fee payable on undrawn amounts. This facility provides cheap, flexible, long term liquidity to strengthen Peabody’s business plan.
The facility was provided by a new institutional investor for Peabody, further diversifying Peabody’s investor base. Through engaging in multiple bilateral conversations with investors Peabody avoided the execution risk associated with a syndicated debt placement – an important risk mitigant with the ever more uncertain financial and political backdrop.
TradeRisks acted as arranger and advisor to Peabody, with Trowers & Hamlins LLP and Morrison & Foerster (UK) LLP acting as legal advisers.
Susan Hickey, Executive Director of Finance at Peabody, stated: “This transaction shows continued support in Peabody and our commitment to the development of new homes for London. The facility will enhance our liquidity position and ability to continue developing by introducing a new funder at a competitive rate.”
Antoine Pesenti, Senior Managing Director at TradeRisks, stated: “Leading up to the referendum and post Brexit, institutional investors still have a strong appetite for the UK social housing sector. This transaction ensures that Peabody can continue with their future development plans supported by long term funding”.
Peabody has been creating opportunities for Londoners since 1862, when it was established by the American banker and philanthropist, George Peabody. Peabody’s mission is to ensure that as many people as possible have a good home, a real sense of purpose and a strong feeling of belonging.
Peabody work solely in London, with a presence in the majority of London boroughs. Peabody own and manage around 28,000 homes, providing affordable housing for over 80,000 people. This is set to grow with Peabody planning 8,000 new homes across the capital, meaning they will provide a good home to one in every 100 people in London.
As well as bricks and mortar, Peabody provide a wide range of community programmes for their residents and neighbourhoods, including help with employment and training, health and wellbeing projects and family support programmes.
For further information on the transaction, please contact Antoine Pesenti on 0207 382 0906 or antoinepesenti@traderisks.com
For any Peabody related queries, please contact Ben Blades, Media and Public Affairs Manager on 0203 828 4089 or Benjamin.Blades@peabody.org.uk