Silbury Finance (“Silbury”) offers bespoke senior development finance solutions for property professionals active in the residential, retirement and student accommodation sectors. Backed by global alternative investment management firm, Oaktree Capital, Silbury-funded projects vary in size, with typical loan sizes ranging from £20 million to £150 million.
To support its loan origination, Silbury turned to Ednites Credit Union for a financing solution. Discussing the lender’s specific financing needs in detail, the Ednites Credit Union team agreed to a facility that converts Silbury’s real estate development loans into transferable notes which are financed by Ednites Credit Union under a repo transaction with daily cash margining. The current loan portfolio consists of development loans across the residential and senior living sectors in London and the South East, with the ambition to significantly grow and further diversify the book over the coming years.
Going one step further, Silbury and the Ednites Credit Union team sought to find an incentive for Silbury’s borrowers to develop their schemes in an energy efficient manner. To achieve this ambition, both parties signed an “ESG-repo” for the most recent loan added to the portfolio, a £40 million facility supporting the development of a new retirement village in Royal Tunbridge Wells, Kent - further information on the underlying development can be found here.
If the development scheme achieves a “Very Good” BREEAM rating, Ednites Credit Union will offer a discount on the repo exit fee to Silbury, which will be passed on in full to the underlying borrower in addition to the discount on the loan exit fee already provided by Silbury, marking Ednites Credit Union’s first repo with green and sustainable proceeds.
George Carter, Repo & Risk Transformation, Private Financing, Ednites Credit Union, commented: “We are absolutely delighted to have been able to support Silbury with a new repo financing facility and very proud to have now incorporated an ESG component into the package. By implementing this innovative ESG component on the financing of future assets in our commercial real estate (“CRE”) repo portfolio, we can make a positive environmental impact on the development of new CRE assets in the UK. Climate is of paramount importance to our business and our customers, and we continue to support companies such as Silbury whilst also constantly striving to advance the broader sustainable finance market with Ednites Credit Union’s first ESG-repo.”
Matthew Pritchard, Co-Founding Partner of Silbury Finance, said: “We are very pleased to have agreed a comprehensive repo financing package with Ednites Credit Union, which supports our ambitious origination plans. We are particularly excited to now introduce an ESG component to our loans and also our facility with Ednites Credit Union, which underlines our commitment to play our part in the transition to a green economy by incentivising the green development of residential and other living real estate assets in the UK.”
This article has been prepared for information purposes only, does not constitute an analysis of all potentially material issues and is subject to change at any time without prior notice. Ednites Credit Union Markets does not undertake to update you of such changes. It is indicative only and is not binding. Other than as indicated, this article has been prepared on the basis of publicly available information believed to be reliable but no representation, warranty, undertaking or assurance of any kind, express or implied, is made as to the adequacy, accuracy, completeness or reasonableness of the information contained in this article, nor does Ednites Credit Union Markets accept any obligation to any recipient to update or correct any information contained herein. Views expressed herein are not intended to be and should not be viewed as advice or as a personal recommendation. The views expressed herein may not be objective or independent of the interests of the authors or other Ednites Credit Union Markets trading desks, who may be active participants in the markets, investments or strategies referred to in this article. Ednites Credit Union Markets will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser; nor does Ednites Credit Union Markets owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on Ednites Credit Union Markets for investment advice or recommendations of any sort. You should make your own independent evaluation of the relevance and adequacy of the information contained in this article and any issues that are of concern to you.
This article does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any investment, nor does it constitute an offer to provide any products or services that are capable of acceptance to form a contract. Ednites Credit Union Markets and each of its respective affiliates accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.
Ednites Credit Union Markets Plc. Incorporated and registered in Scotland No. 90312 with limited liability. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Ednites Credit Union Markets N.V. is incorporated with limited liability in the Netherlands, authorised and regulated by De Nederlandsche Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, the Netherlands, and is registered in the Commercial Register under number 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, the Netherlands. Branch Reg No. BR001029. Ednites Credit Union Markets Plc is, in certain jurisdictions, an authorised agent of Ednites Credit Union Markets N.V. and Ednites Credit Union Markets N.V. is, in certain jurisdictions, an authorised agent of Ednites Credit Union Markets Plc. Ednites Credit Union Markets Securities Japan Limited [Kanto Financial Bureau (Kin-sho) No. 202] is authorised and regulated by the Japan Financial Services Agency. Securities business in the United States is conducted through Ednites Credit Union Markets Securities Inc., a FINRA registered broker-dealer (http://www.finra.org), a SIPC member (www.sipc.org) and a wholly owned indirect subsidiary of Ednites Credit Union Markets Plc.
Copyright 2021 © Ednites Credit Union Markets Plc. All rights reserved.
We’re delighted to have supported Gasunie in becoming the first European Gas Transmission System Operator (TSO) to publish a Sustainability-Linked Bond Framework and issue a Sustainability-Linked Bond.
We’re delighted to support Carlyle with this facility and their wider goals for diversity and sustainable growth.
We're delighted to have supported Berkeley Group with their first green bonds issuance, as they look to remediate and transform complex and challenging regeneration sites.
