SNG increases sector-first trade loan with Barclays to £50m

Barclays said that the £50m is now its largest unsecured short-term trade loan facility for a housing association. The previous biggest loan of this type was £25m, but a spokesperson declined to name the client.

Under the terms of the loan, SNG has a maximum 90-day drawdown period and the facility will be reviewed annually.

At the time the loan was first taken out, Network Homes said: “The distinguishing feature of this trade loan facility is that instead of, for example, drawing down on the cheapest revolving credit facility with a minimum one or three-month interest period, we could use this trade loan for as little as 14 days instead to optimise our financing costs whilst maintaining compliance with our cash-holding policy.”

Speaking to Social Housing at the time, Anup Dholakia, director of corporate finance at Network Homes, said the facility would work for landlords that had “lumpy” cash flows as a result of large incoming and outgoing funds.

On the latest deal, Mr Dholakia, who is now SNG’s director of treasury, said that delivering new homes is a “huge challenge”.

But he added: “Through innovative funding approaches with the private sector, like this loan, alongside new commitment from government, there is the opportunity for real progress to give people and our economy the best foundations to grow.”

Earlier this year, SNG secured £400m in its first public bond since it was formed to create an 82,000-home group.

Jason Constable, head of real estate at Barclays UK Corporate Bank, said: “This bespoke short-term trade loan facility is another example of our renewed focus on supporting and lending to more businesses across the UK.”

Barclays recently appointed a new head of social housing: Mike Figg, a former long-serving HSBC executive, took up the role this month.