Law firm, Trowers & Hamlins advised housing association Peabody Trust on the establishment of its first Medium Term Note (MTN) programme, building on Peabody's proven strength in raising finance in the capital markets.
Peabody's MTN programme will allow Peabody to raise up to £1 billion in note issuances to use in accordance with its Sustainable Finance Framework. The programme is structured to permit issuances of social, green and sustainable bonds and Peabody's Sustainable Finance Framework is aligned with the principles and guidelines published by ICMA and the Loan Market Association for sustainable finance debt instruments.
The MTN programme is Peabody's first venture into capital markets since its merger with Catalyst Housing Limited which completed in April 2023. The group owns and manages over 108,000 homes across London and the South East, making it one of the largest social housing providers in the country. Delivering on its plans to establish a MTN programme less than 12 months following the merger demonstrates Peabody's commitment to delivering on its priorities.
Eleanor James, Partner in Trowers' Banking and Finance team, led on the transaction, assisted by Robyn Asbury, an Associate in the same team. Forhad Ahmed, Senior Associate in the Real Estate Finance Security team, led on the security work, supported by Partner Melanie Comer, with the team carrying out due diligence on 6,000 properties within a very short timeframe.
Eleanor commented:
"Peabody's treasury team has worked exceptionally hard to deliver this MTN programme, particularly when you consider that the programme is fully secured at establishment, a real achievement. The programme will deliver flexibility for Peabody in accessing the capital markets and demonstrates its commitment to ensuring its social purposes are delivered in a sustainable way, continuing to deliver much needed homes for the families of London."
Anthony Marriott, Director of Treasury and Corporate Finance at Peabody said:
“Sustainable finance is vital in helping us achieve our goals and supports the economic, social and environmental wellbeing of our residents. We plan to spend around £2 billion improving and maintaining residents’ homes over the next five years. We’ll also make thousands of homes more energy efficient through our greener homes programme. And we’ll contribute to sustainable, inclusive growth in local areas through regeneration, placemaking and by providing new social and affordable homes. This note programme will give us the appropriate flexibility and ability to access low-cost long-term sustainable finance to invest in these priorities.”
