Devon & Cornwall Housing Association has completed a £10m refinancing deal.
The association repaid its fixed-rate loan to the Housing Finance Corporation early and has replaced it with variable-rate funds it set up before the deal.

Under the deal, Devon & Cornwall had to purchase an equivalent amount of the bonds THFC had issued to finance the loan. It then sold them back to THFC in exchange for the loan’s cancellation.

The full £10m loan – about 10% of the association’s loan portfolio – was due for repayment in 2016.

Tony MacGregor, director of resources and finance at Devon and Cornwall, said: “ We expect the costs of early repayment in today’s market to be balanced out by future interest savings.

“The transaction will be cost-neutral.”

Source

Housing Today