30th July 2007

NCHA in £150m deal with Bank of Scotland and Lloyds TSB

Nottingham Community Housing Association has secured £150m of funding with £75m from the Bank of Scotland and £75m from Lloyds TSB. Taken over 30-35 year terms, it will be used to support the Association’s development programme and rationalise their loan portfolio.

 

NCHA is part of a consortium with the Longhurst Group which has received £56m of Social Housing Grant for 2006/08 to build approximately 1,350 dwellings. Of this funding, NCHA has been allocated £17m, which will produce 473 new homes during its 2006-08 investment programme.

 

Robert Simmons, Associate Director of Housing Finance at the Bank of Scotland commented:

“We are delighted to become a partner of NCHA and look forward to developing a long term relationship helping provide quality affordable housing and related services for their tenants in the East Midlands."

 

In response, Paul Higginbotham, NCHA’s Finance Director said:

 

 “We have arranged a £75m loan with Bank of Scotland as part of a £150million refinancing of a large proportion of our existing debt and the provision of almost £30million of new funds for development finance. The new financing will reduce NCHA’s cost of funds by over £2.5m over the next 30 years. In addition, by reducing asset cover requirements, NCHA will increase the security offered by its existing and newly developed housing property, enabling the Association to better utilise the strength of its Balance Sheet.”
 

-Ends-

Paul Higginbotham,

NCHA Finance Director