Key deal structures in social housing finance
Produced in partnership with Neil Waller of Trowers & Hamlins LLP
Key deal structures in social housing finance

The following Banking & Finance guidance note Produced in partnership with Neil Waller of Trowers & Hamlins LLP provides comprehensive and up to date legal information covering:

  • Key deal structures in social housing finance
  • Social housing finance—typical funding principles
  • The key deal structures
  • Loan facilities
  • Bond issues
  • Private placements
  • Use of security trusts in social housing finance

This Practice Note explains the key bond issue, private placement and loan facilities deal structures used in social housing finance.

For more information on social housing finance transactions, see Practice Notes:

  1. Social housing entities entering into finance transactions, and

  2. The key financing terms in social housing finance

Social housing finance—typical funding principles

Most social housing finance is provided as general corporate funding rather than funding for a particular project or development.

Most financing is secured on social housing assets, but this is not always the case. There have been a few recent unsecured bond issues, for example the £400m unsecured bond issue by Places for People in August 2016.

The key features which differentiate credit facilities for Registered Providers (RPs) from similar facilities to other corporate borrowers are as examined below:

Wide corporate purpose

Most facilities for RPs are given for general corporate purposes and can be used by the RP borrowers for any purpose which is permitted by their constitutional documents and the regulatory framework.

Security given on a portfolio basis

RPs typically charge a portfolio of properties which stand as security for all facilities made available under the relevant agreement. There is typically no link at all between the security provided by RP borrowers and the purpose for which the facilities are raised. In fact, typically, RPs will charge properties which they already

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