Paradigm secures £100 million of funding

We’ve secured £100 million of funding from American corporate investor Barings to support our ambitious development plans to build 600 homes a year for the next three years.

The proceeds of the private placement will be drawn down in two instalments. The first tranche of £60 million, with a coupon of 3.25% a year was drawn for immediate usage and the second tranche of £40 million, with a coupon of 3.4%, will be drawn down in 2019. The borrowing is due for repayment in 2048.

“This is a phenomenally good deal for an organisation our size and I am delighted that our building programme is secure thanks to this investment” says Paradigm Chief Executive, Matthew Bailes.

“Our purpose is to provide new homes for people who need them the most and this funding is a key factor in helping us achieve this. We had a great deal of interest and a number of bids which reflects very well on Paradigm and bodes well for our sector. ”

The deal was arranged by Santander on behalf of Paradigm and the financial advisor was Traderisks.