Anchor Hanover Group, a not-for-profit provider of housing and care for older people, has completed a refinancing of its bank debt, securing a long-term A+ credit rating from S&P Global Ratings.
The company said it is rebalancing its portfolio focusing more on financially benefiting from long-term stability from debt capital markets that will underpin its ambitious growth plans.
At the forefront of Anchor Hanover’s restructured portfolio is a new £300 million unsecured sustainability linked revolving credit facility. In addition to establishing the first syndicated sustainability linked loan in the sector, Anchor Hanover becomes the first housing association to move its banking facilities to a fully unsecured basis.
The banks providing the revolving credit facility are Barclays, MUFG, National Australia Bank and Santander UK, with Barclays acting as global coordinator and National Australia Bank acting as sustainability coordinator.
Bradford-based Anchor Hanover offers retirement properties, including 114 care homes, to more than 65,000 elderly people at almost 1,700 locations across England and employs over 9,000 people.
Sarah Jones, chief financial officer at Anchor Hanover, said: “We are delighted to have agreed the first sustainability linked unsecured banking portfolio in the sector, with current and new bank partners. This refinancing represents excellent value for Anchor Hanover and will underpin our strategy to provide more and better homes, to offer more opportunities for colleagues, to be more efficient, and to be a more influential voice for people in later life. The ESG component underlines our commitment to sustainability for our current and future residents, colleagues, and the communities in which they live.”
Centrus was sole financial advisor to Anchor Hanover, supporting the development of the refinancing strategy as well as its structuring and implementation.
Phil Jenkins, managing director of Centrus Financial, added: “Centrus is committed to finance with purpose. Therefore, we are thrilled to have worked with Anchor Hanover on this innovative refinancing which is designed to meet Anchor Hanover’s ambitious growth plans in providing housing and care services to older people. In establishing the first fully unsecured banking portfolio in the sector, Anchor Hanover will benefit from strengthened liquidity, improved asset efficiency and reduced operational risk.”
Date published: April 1, 2021