THFC secures £20m transaction for Acis Group

For confidentiality reasons, details around the spread, all-in price, number of investors and whether this was a private transaction were not available.

THFC did explain in a release that Blend was able to achieve competitive pricing by making the most of investors who had uninvested funds that needed to be put to use before the calendar year end.

Will Stevenson, group treasurer at Blend and THFC, said: “In spite of the continued economic pressures and the increases we’ve seen in global bond yields, this latest transaction for Acis shows there are deals to be done at competitive rates for HAs [housing associations].

“Blend and THFC are trusted leaders in helping HAs to access the capital markets, and we’ll always work in the best interests of our clients and the social housing sector – which remains an attractive place for investors to put long-term money.”

Priya Nair, chief executive of Blend and THFC, said: “Raising the right debt financing at the right time is part of our core business here at Blend and THFC, and we were pleased to secure the finance Acis required at a time when investors were keen to place their funds.

“With bond yields where they are right now, being fleet of foot and able to respond to investor appetite really can make a difference to cost of funds, which ultimately means more financial capacity and greater social impact during a very important period for our borrowers.”

Acis joined the Blend pool in summer 2024 with a view to raising financing to support its development and asset management plans.

The association manages around 7,000 affordable homes in Lincolnshire, South Yorkshire & Humberside, Nottinghamshire and Derbyshire, including more than 1,600 student homes in Sheffield and Nottingham.

Adrian Chamberlain, finance director at Acis, said: “We were delighted to be working with Blend for the first time to secure this funding. 

“The flexibility provided by the Blend product was important to us in meeting our current funding need. We are committed to making a meaningful difference in the lives of individuals and families across our communities and this new loan will help us to achieve this.”

In August 2023, the Regulator of Social Housing changed the basis for Acis’ V2 grade for financial viability. It noted the landlord was reliant on income generated from its sales programme and student housing business to maintain covenant compliance, and that its financial headroom remains “relatively low”.

In May 2024, THFC raised £30m in the capital markets for The Swaythling Housing Society, a subsidiary of Abri Group.