A2Dominion Secures £150m Funding Package Involving New Housing Sector Lender
Housing sector underlines attraction to new lenders as BNP signs a £50m revolving credit facility with A2 Dominion
A2Dominion has secured £150m of funding lines from three leading financial groups – MUFG, BNP Paribas and HSBC, which will support its goal of building 6,000 new homes over the next five years. This represents the highly rated BNP’s welcome entry to the market. £50m will be provided by BNP Paribas through a five-year RCF.
Centrus was engaged by A2Dominion to advise on the capital raising process from the banking market which involved engagement with a range of existing and potential lenders. Centrus has been working closely with BNP Paribas as the bank has developed its strategy for the UK housing sector. This follows similar support from Centrus in relation to the entry into the market of HSBC and MUFG, both of which have subsequently become significant relationship banks.
Dean Tufts, Executive Director of Finance at A2Dominion Group commented that It was incredibly encouraging to receive interest from such a wide range of banks to the sector and I’d like to thank Centrus Advisors for assisting us in this process. Centrus added considerable value in sourcing this funding on terms which were optimal for A2Dominion, both economically and strategically. We are delighted to build upon our strong portfolio of banks with the additions of MFUG and BNPP and look forward to developing all of these relationships further in the future.
Paul Stevens, Managing Director of Centrus said We are delighted to have been able to add value to this capital raising process for A2Dominion and to have worked closely with BNP Paribas as the bank has laid the ground for its re-introduction to the UK housing sector. We believe that a healthy banking and institutional investor market is vital in providing on-going capital to our housing clients and we will continue to support A2Dominion and our other clients in identifying new relationships in these areas.
A2Dominion is a leading residential property group with a social purpose that currently manages 37,000 homes primarily in London and Southern England, and is a long-term Centrus client that we have supported on these previous capital raising initiatives: