Centrus advises A2Dominion on £60m Floating Rate Note from IFM Investors
This is the first transaction by IFM Investors in the UK social and affordable housing sector
Centrus client A2Dominion has entered a £60m private debt agreement with the leading global investment services provider IFM Investors.
Centrus was engaged by A2Dominion to advise on the capital raising process, and as the leading independent advisory firm continues to work hard to encourage new lenders into the housing sector, Centrus introduced the housing association to the fund for the first time.
The privately-financed investment, issued as an unsecured nine-year floating-rate note (FRN) due 2027, is IFM Investors’ first in the social and affordable housing sector and the second FRN to be transacted in the UK housing sector.
The investment was made by the firm’s infrastructure debt team on behalf of two insurance clients from the UK and US, who have global infrastructure debt investment mandates with IFM Investors.
As a residential property group with a social purpose, A2Dominion owns and manages 37,000 properties, including social, affordable and private homes. It will use the funding to support its activities including the development of mixed use housing that adds to its social and affordable housing portfolio. As a result of the successful issue of the £60m FRNs to IFM Investors, A2Dominion’s arranged loan facilities now exceed £2bn.
Centrus Managing Director Phil Jenkins commented that: A2Dominion has led a number of financing innovations in the housing sector and we are pleased to have supported Dean and the team in the latest deal with IFM. This builds upon the recent round of banking deals which also included new entrants to the sector and underlines A2Dominion’s strategy of widening its lender and investor relationships.
Dean Tufts, Executive Director of Finance and Strategy at A2Dominion, commented: A2Dominion continues to seek to diversify its funding sources, building upon its portfolio of revolving credit facilities for its RPs and unsecured investors to fund the wider Group. Centrus as A2Dominion’s advisor has opened doors to new banking and investor relationships and IFM is the latest example of this. We are very pleased to be working with Centrus and IFM.
Centrus is widely recognised as the leading specialist independent treasury and corporate finance advisor to the housing association sector in England, Wales and Ireland. Centrus has been engaged by approaching 100 housing associations, including 12 of the G15 and many leading national and regional providers, as well as smaller locally focused and specialist operators. Our advice is delivered by a specialist team which includes renowned experts in debt capital markets, banking, derivatives, financing strategy and risk management. We have been involved in many of the key market developments and ground-breaking financing transactions as well as supporting our growing client base with ensuring their treasury platforms generate value for money combined with prudent risk management.