TradeRisks arranges £30mn private placement to support Northern Ireland social housing

TradeRisks has secured a £30 million private placement for Apex Housing Association (Apex), one of the leading housing associations in Northern Ireland. Funding is provided by Pension Insurance Corporation (PIC). It will be the third tranche under the Notes Purchase Framework Agreement established by TradeRisks in 2021, under which Apex has already utilised £100 million.

The funding will go towards the ongoing development of 300 to 400 new homes per year as part of Apex’s long-term commitment to addressing housing shortages and meeting the evolving needs of communities in a financially sustainable way.

In line with its core values of sustainability and tenant satisfaction, Apex is prioritising the provision of energy-efficient homes. With this funding, Apex is implementing measures with the intention that all newly constructed properties achieve a minimum Energy Performance Certificate (EPC) rating of 'A' from 2024. This commitment not only aligns with global efforts to reduce carbon emissions but also benefits tenants by lowering energy bills and improving comfort levels.

Gourav Choudhary, director, capital markets at TradeRisks, who acted as sole arranger and dealer for the transaction, said: “We are pleased to have supported Apex Housing Association on this private placement. The Note Purchase Agreement (NPA) framework that TradeRisks established in 2021 has enabled Apex to efficiently source further capital for development of affordable homes, making a real difference to communities.”

Roderick Canning, finance director at Apex Housing Association, said: “We are delighted to have secured this funding, which will support our growth strategy of providing high-quality affordable housing to those in need across Northern Ireland. We value TradeRisks’ support in helping secure the funding from PIC.”

Celia Franch Lopez, debt origination manager at Pension Insurance Corporation, said: “We are very pleased to have worked with Apex Housing Association on this transaction, supporting the social value it is contributing to the Northen Ireland economy. The investment provides an attractive risk profile in an area of high demand for social housing. In addition, the maturity profile is well-suited to our liabilities. This investment complements our portfolio providing low-risk, long-term, secure cashflows that match our pension liabilities for decades into the future.”