Arlingclose facilitates flexible structured funding from our local authority treasury management clients to housing associations (registered providers/registered social landlords). We have a positive view of the housing association sector from a credit, governance and social standpoint, and have been instrumental in building this into clients’ investment options. Our clients are managing around £25bn in investment balances, a portion of which is available for longer term funding opportunities.
We do not have a staid or inflexible approach and seek to match borrowers and lenders with complimentary objectives. Unlike banks or other funding providers, we can arrange novel or innovative products which works for both borrowers and lenders. This includes considerations around loan terms, rates, structure, security and credit rating.
For example, Arlingclose does not rely on external credit ratings and has arranged £135m of unsecured funding for unrated housing associations, performing our own analysis on the creditworthiness of the potential borrower before making a recommendation to our panel of lenders.
We have also arranged funding for smaller housing associations with property numbers below 1,000 whose lower funding needs may dip below larger funders’ radars.
Arlingclose has arranged over £250m of local authority funding for housing associations. Our clients lend on an unsecured basis in a fixed term or revolving credit facility format, designed to assist housing associations meet both liquidity needs and regulatory, credit agency and other lenders’ measures, while freeing up property for further long-term borrowing to fund housing needs.