© 2013-2018 Abquest Capital      www.abquest.co.uk


15 - 30 year loans £5m to £20m – Rate fixed throughout term – Favourable covenants


In the current market, borrowers requiring smaller-scale funding have limited choice of financing options.  Typically, lenders for smaller loans require either a re-fixing of interest rate part way through the term (when rates might well be very different from today's historic lows) or collateral requirements and balance sheet constraints substantially more onerous than those obtainable in larger borrowings.


To address this funding gap, ABQUEST CAPITAL has arranged with an institutional investor an initial pool of £50m specifically earmarked for smaller-scale lending, with rates fixed throughout a full term of 15  to 30 years and a lower limit of £5m for individual loans.


This provides opportunities for smaller Associations to finance projects on a similar basis to their larger counterparts or for refinancing or for non-mainstream projects within larger Associations.


Key features include:

                      Term up to 30 years – rate fixed throughout

                      Typical minimum asset cover 1.2x for Social or Affordable Housing (other collateral can be considered)

                      Covenants relate to specific assets only, not to the whole balance sheet

                      Direct loans with no swaps or hedges involved (no FRS 102 complications)

                      Day to day banking relationships unaffected

                      No rating required.