Caredig is an ambitious and well-established registered provider of social and affordable homes, based in South West Wales. It has a strong reputation for making a positive difference in its local communities.
Caredig has undertaken a series of transactions to transform its treasury portfolio. This includes arranging a new 25-year £26m fixed rate facility from Principality to refinance existing shorter dated and more restrictive debt. A new £20m RCF has also been arranged with Santander.
A further c.£50m of existing funding has been restructured, with more flexible covenants and controls.
The new funding strongly enhances Caredig’s treasury position, significantly reducing long term refinancing and interest rate risk. Further the funding arrangements provide additional capacity for Caredig to invest in existing properties (including for de-carbonisation), as well as increase its development programme for new homes
These transactions builds upon the significant financing restructure undertaken in 2020, ensuring the treasury platform is robust but sufficiently flexible to adapt to future needs.
As treasury and funding advisor, Centrus worked closely with Caredig to develop strategy and prepare materials to position its credit strengths to funders. Centrus led negotiations across the transactions and guided Caredig through running a multi-funder process (covering all bank and capital markets options), in seeking the long dated finance.
This dynamic process allowed for agility, right up to the point of pricing enabling Caredig to optimise the outcome.
Cerys Gregory, Director of Finance, Development & Governance at Caredig, “The new funding arrangements, have placed Caredig in a significantly stronger position to implement our future strategy. We now have a more robust treasury platform, that better supports our mission of helping to build communities where people can flourish”.
Sam Goldman, Director at Centrus “The outcomes achieved by Caredig, significantly enhance its ability to meet its ambitions, with reduced risk and enhanced long term viability. Proud to have supported Caredig through this process and with the excellent results achieved”