Bernicia secures £100m Barclays loan to support construction of 1,000 homes

Housing association Bernicia has secured a £100m loan from Barclays Bank which will support the building of up to 1,000 new affordable homes across the north-east.

The Northumberland-based provider was advised by Centrus on the new facility, which is structured across two tranches, a seven-year and a 10-year.

Barclays and Bernicia have put in place a loan-Linked ISDA, which helps the 14,000-home association hedge against interest rate exposure.

The pair also agreed the refinancing of an existing £20m revolving credit facility.

“The support shown by the Barclay’s team reflects their ongoing confidence in Bernicia, our business, people and our ambitious plans,” said Janette Longstaff, executive director of finance at Bernicia.

“Well structured, competitively priced debt is central to making our ambitions deliverable - we were able to secure highly competitive terms from a strong field of lenders. Barclays offered the best overall package, and we’re delighted to be extending our relationship with them.”