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settle Group completes £75m private placement with a coupon sub 2.40%

settle Group (“settle”) has finalised its first own name issuance into the capital markets bolstering liquidity and supporting delivery of settle’s 2024 Vision which will see 1,500 new homes developed.

Letchworth-based settle is a leading provider of affordable homes across Hertfordshire & Bedfordshire. Providing around 9,500 homes, settle has a clear long-term strategic vision to efficiently deliver high quality affordable homes, alongside services that are highly valued by their residents.

The £75m 30-year institutional private placement is largely deferred minimising the cost of carry for settle whilst empowering investment decisions to deliver new homes from a position of financial strength.

Centrus acted as sole financial advisor to settle and arranged the private placement with Aviva Investors. Trowers & Hamlins advised on the corporate and financing aspects, and Devonshires advised on the property security elements which will underpin the new financing arrangements.

Jason Searle, Head of Development Finance & Treasury - settle Securing long-term borrowing at competitive rates is key to the delivery of our long-term strategic objectives. We are delighted to add Aviva to our lending base and are really pleased with how our debut Private Placement issuance progressed.
Munawer Shafi, Head of Structured and Private Debt - Aviva Investors We are pleased to have completed this deal with settle and further our investment in the UK’s social housing programme, at a time when the provision of such schemes is increasingly important for at-risk income groups across the country. The quasi-sovereign nature of Social Housing makes it an attractive defensive sector in the current environment, particularly when it comes to proven operators such as settle, which we expect to deliver strong long-term performance within the overall portfolio.
John Tattersall, Director - Centrus This transaction delivers on a number of key objectives that have been in settle’s sights for some time and paves the way for delivery of the group’s ambitious development plans. The PPs structure pairs a cost effective deferral with funding certainty, benefits from a very competitive coupon, and covenants that together allows settle to focus on delivery of its corporate objectives.