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Scottish landlord Cairn Housing Association has raised £50m through a private placement deal with an unnamed US insurance company to support.
The 3,500-home association will use the money raised to help deliver a development programme that will see it build 400 new affordable homes over five years.
The 35-year private placement is Cairn’s first venture into capital market funding. The money will be drawn down in two stages over the next two years, with the first tranche transferring this week.
Cairn will continue to use facilities agreed with its longstanding lenders, Abbey National Treasury Services and the Royal Bank of Scotland.
Jason MacGilp, chief executive of Cairn, said the new deal was “a real vote of confidence in the financial strength, the management and governance of Cairn and our plans for the future”.
He added: “Securing this long-term, low-rate funding will allow us to invest in homes and communities across Scotland to help those desperately needing affordable housing, as well as significantly improving the investment to our existing homes.”
Santander helped Cairn broker the deal, while Harper Macleod acted as legal advisor.
Tony Fordham, head of private placements at Santander, said: “Santander has worked with Cairn for the last 18 years. We are delighted to have helped them with their debut capital markets transaction, which provides a long-term and cost effective way to fund its social housing programme.”