Legal & General’s commercial lending business has made its first social housing loans, after hiring specialist Alex Gipson from RBS.
The insurer has made two 15-year, fixed-rate loans to Hyde Group: £61m for Hyde Southbank Homes and £41m for Hillside Housing Trust.
Gipson said: “An insurer’s long-term pension and life insurance liabilities provide much closer alignment with the borrowing desires of the housing association sector.”
Hyde finance director Simon Peacock said the group had been “pleased by the options offered to us by L&G, which enabled us to take advantage of favourable all-in costs of financing available in today’s capital markets”.
Hyde was advised by LCF Edmond de Rothschild Securities, Edmond de Rothschild Group’s corporate finance arm.