Magna Housing has secured £150m in new financing to support the creation of around 1,500 new affordable homes over the next five years.

The community-based housing association was supported by treasury advisors anddebt arrangers Centrus and legal counsel Bevan Brittan to agree new financing deals with three banks.

These consist of a £70m term loan from Allied Irish Bank and £80m of revolving credit facilities split between Barclays and Nationwide.

The funds will enable Magna’s ambitious plans to significantly grow the number of new homes it creates for local communities. Magna plans to double its contribution to tackling the shortage of affordable housing by delivering up to 300 homes a year over the next five years.

Magna currently provides more than 9,000 social rented, sheltered, supported, and shared ownership homes across Dorset, Somerset and Devon.

It also plans to continue to invest in the condition of its existing homes, including energy efficiency improvements partly funded by the government’s Warm Homes Plan.

The new funding agreements have built-in flexibility allowing Magna to draw on a mix of revolving credit facilities and term debt, with costs spread out to help provide security over the investment period.

Ian White, Head of Finance at Magna, said:

“We’re delighted to have secured funding to enable Magna to continue to deliver more new, affordable homes in line with our strategy. The support from Centrus and Bevan Brittan not only ensured appropriate governance but most importantly achieved best value, allowing us to keep more cash to invest in new homes, sealing a great job done by all.”

Louise Leaver, Head of the Housing Finance team at Bevan Brittan, said:

“It was anabsolute pleasure to work with Magna and Centrus on this important funding update which will enable Magna to support their strategic plans going forward.”

Tom Miller, Director at Centrus, added:

“We are delighted to have supported Magna in their latest fundraising process, which resulted in a highly competitive outcome that will support delivery of muchneeded new homes.”