MUFG launches new social housing offering

Mitsubishi UFJ Financial Group’s (MUFG) banking arm, today announced the launch of a new UK social housing product offering and completion of its first deal with Anchor.

As one of the world’s largest banks, it has established a social housing offering that consists of a number of lending products comprising 5 - 10 years secured lending by way of either Term Loan or Revolving Credit Facility (RCF) and ancillary business lines including transaction banking, derivatives and capital market solutions.  

Anchor is England’s largest not-for-profit provider of housing and care for people aged over-55 with over 26,700 social housing units, and is the first organisation to take advantage of MUFG’s new product offering.  MUFG is acting as one of the mandated lead arrangers for a seven-year £265 million RCF for financing potential acquisitions, development and general corporate purposes and provided £75 million of the overall loan. 

Robert Bartlett, executive director, Infrastructure, MUFG said: “MUFG has had connections with the UK since the 1800s and has a long history of funding other UK social infrastructure projects such as schools, hospitals, prisons and other government buildings, in addition to roads, telecoms and transport such as airports and railways. 

"Moving into the social housing sector is a logical progression and matches our own ethos of corporate social responsibility, both in our lending policies and in our commitment to contributing to the communities in which we operate.

“The signing of Anchor represents an important milestone as our very first social housing client and sets the stage for growing a new portfolio as part of the overall MUFG strategy. It also helps meet increasing demand from housing association’s for these types of financing solutions.

"The government’s current housing development target to build more social housing is driving the requirement for additional investment across all sources of finance from both traditional lenders and the debt capital markets.”

Anchor chief executive Jane Ashcroft CBE said: “Our business plan sets out ambitious targets to deliver happy living to many more older people and this facility is enabling us to achieve that. The acquisition of 29 care homes, announced last month, as well as our significant development pipeline are major steps in achieving our growth strategy."

-dash.com