We secured £120m Green Private Placement with four North American Investors

13/05/2021

In 2021, we developed a Green framework in line with the Loan Market Association’s Green Loan Principles, with the proceeds from the private placement to be applied to the financing and refinancing of energy efficient buildings at EPC ratings A or B.  The transaction is placed in a range of long dated tenors from 15-30 years with four North American Investors. 
 
Chatham acted as Treasury Advisor, and NatWest acted as sole Private Placement Agent and sole ESG Structuring Advisor.
 
Carol Carter, CEO said: “ We are delighted to have attracted a high level of interest from investors and to have secured terms which will support us well into the future in our ambitions to provide new affordable homes and invest in creating homes and communities people are proud to live in’
Gloria Yang, Deputy Chief Executive and Finance Director said: “With our long and established social value credentials and our commitment to environmental sustainability, we are very pleased to bring four new investors on board to support our investment in homes and local communities.  One of the investors is new to UK Social Housing and we have no doubt they will be investing more into the sector”
 
Chatham team said: “We were delighted to support Origin on this financing. Origin was one of the pioneers on using Private Placements as a source of long term funding and this is the third time it has accessed the market. The strong support it has received from investors is testament to the quality of its credit, commitment to the delivery of social and environmental benefit to the communities it serves and standing of its management. While it initially planned to raise £80m, the issue was heavily oversubscribed on very aggressive terms and the increase in size to £120m reflects this. ”
 
George Flynn, Debt & Financing Solutions at NatWest said: “We are delighted to have supported Origin in this innovative and landmark transaction which, we believe, is the first LMA aligned use of proceeds in a Green Private Placement for a Housing Association. This demonstrates NatWest’s commitment to the social housing sector, to supporting clients in showcasing their sustainability credentials, and in structuring transactions in line with industry standards. This also shows an innovative approach in embedding suitable sustainability technology for the borrower and in the Private Placement market.
The transaction’s competitive pricing and strong investor interest, including a new investor to the social housing sector, is testament to Origin’s strong credit story and management’s efforts during the distribution phase, highlighting the importance of a well-structured and considered approach to the private placement market.”