AHF’s latest pricing achieves 4 basis points per annum below UK Government’s own cost of finance
Ahead of tomorrow’s budget, the Government backed aggregator, Affordable Housing Finance (AHF), priced its 29th sub 2% EIB drawdown.
This morning it was the turn of Kent based housing association [HA], Golding Homes, who secured £51.5m of long-term finance at a fixed rate of 1.791%, 4 basis points per annum below the UK Government’s own cost of finance.
Golding Homes, who manage over 20,000 residents across the Garden of England, will be able to drawdown the agreed funding on the 19th December 2017. Providing the non-for-profit with a flexible start to the new year, and a substantial boost to the company’s plans to build more affordable homes and enhance its community support by 2020.
Neil Perrins, Director of Resources at Golding Homes said:
“I am delighted to build our relationship with THFC, AHF and the EIB with this new low-cost financing. It will support Golding Homes’ growth plans and help us deliver 600 new homes across Kent over the next three years.”
In just over a month, AHF has allocated £301.5m of EIB II facility funding to seven borrowers, all with very tight spreads.
AHF’s Chief Executive, Piers Williamson, said:
“Although there is some debate about what will be announced in tomorrow’s budget, all will agree today’s deal, alongside the previous loans agreed under EIB, represent the most efficient mode of competitive financing, delivering new homes across a variety of tenures.”
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