Tuntum Housing secures £42.5m bond funding
London, 26 March 2020 – TradeRisks Limited, a specialist provider of advice to housing associations, local authorities and other social infrastructure sponsors, has advised, arranged and placed a £42.5 million unlisted bond with one UK insurer and one UK pension fund maturing in 2053 on behalf of Tuntum Housing Association Limited, a 1,400 unit housing association based in Nottinghamshire.
This debt transaction has two tranches, a £32.5m spot tranche and a
£10m one-year deferred tranche with coupons under 3%. Both tranches will berepaid in three equal instalments in 2045, 2049, and 2053. The funding was priced at an attractive credit spread following bilateral engagement with a shortlist of investors. The deferred structure aligns to Tuntum’s needs and reduces cost of carry. Tuntum Housing will use the proceeds to develop much-needed affordable homes and refinance some of its existing bank facilities.
Junior Hemans, Chair of Tuntum Housing Association commented: "This is a hugely significant step for Tuntum Housing Association which will enable us to refinance some of our existing loans and provide us with the funds for more new homes”.
TradeRisks acted as the arranger of the transaction. Antoine Pesenti, Managing Director, TradeRisks, noted “This transaction shows smaller locally focused housing associations can pursue capital from large institutional investors. This transaction ensures that Tuntum can continue with their future development plans supported by long term funding.”
TradeRisks Limited was acquired by Gresham House plc, the specialist alternative asset management business at the beginning of March 2020.
For further information please contact Antoine Pesenti on +44 (0) 20 7382 0906 or antoinepesenti@traderisks.com
Gresham House acquired TradeRisks and ReSI Capital Management Limited on 5 March 2020.
About TradeRisks and Gresham House
TradeRisks is a specialist provider of debt structuring and advisory services to the housing and social infrastructure sectors, with strong ESG credentials. Its team has 19 years of experience advising and raising financing for social housing, Local Authorities, university housing projects, care homes, and other infrastructure assets. TradeRisks Limited is authorised and regulated by the UK Financial Conduct Authority and registered as Investment Adviser with the Securities and Exchange Commission of the United States since 2002.
TradeRisks’ wholly owned and separately regulated alternative fund manager subsidiary, ReSI Capital Management Limited, is the manager of Residential Secure Income plc (LSE: RESI), a closed-ended investment company which seeks to deliver secure income returns to its shareholders by investing in portfolios of shared ownership, retirement and local authority housing.
Gresham House acquired TradeRisks and ReSI Capital Management Limited on 5 March 2020.
Gresham House is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes timber, renewable energy, housing and infrastructure, strategic public and private equity (private assets). The group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.
Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.