Santander Corporate and Commercial Banking has agreed a refinance package totalling more than £300m with not-for-profit housing association Peabody.
The funding package includes a £125m revolving credit facility and a £185m term loan, allowing Peabody to continue both its regeneration plans and its ongoing development programme. The £310m will extend the social housing provider’s liquidity under a more simplified lending structure, enabling operational efficiencies.
Peabody is responsible for nearly 109,000 homes across London and the Home Counties. The housing association is also responsible for the community centres, play areas and green spaces that bring these areas to life and ensures these spaces are well-maintained and provide reliable landlord services.
The refinance agreement will support Peabody as it continues to develop quality affordable housing and invest in residents’ existing homes to ensure they are well maintained, safe and sustainable.
Santander and Peabody have a long-standing relationship dating back to 2003 and the bank has supported the housing association as it has grown to become one of the largest social housing providers in the sector.
Jane Johnstone, Head of Social Housing, Santander Corporate and Commercial Banking, said: “We are delighted to be strengthening our relationship with Peabody as they continue to provide a solution to much needed affordable housing in London and the Home Counties.
“Affordable housing is a key focus for the Government and we at Santander are committed to playing our part in forwarding this agenda. We have lent to housing associations for over 25 years, and look forward to continuing working with Peabody to amplify our shared commitment to positive long-term change.”
Phil Day, Chief Financial Officer at Peabody, scommented: “I’m pleased that we’ve agreed this refinancing package with Santander. It simplifies the structure of our debt with the bank and will help us continue with our plans to invest in residents’ homes so they’re safe, warm, and well-maintained, as well as doing what we can to build much-needed new homes. We’re always looking for opportunities to develop our links with financial institutions and look forward to building on our relationship.”
For over 25 years, Santander UK has partnered with Social Housing providers to help the sector reach its goals, lending to over 100 housing associations in the UK that provide over 1.9 million homes. The bank now lends £7.8bn to the sector and offers a range of finance solutions.
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