2nd December 2024
Andium Homes has secured a £100m Social private placement to fund its ambitious development programme, delivering much needed new homes for Islanders.
This agreement is understood to be Jersey’s first Social labelled private placement, the proceeds of which are used for projects that address or mitigate a specific social issue and seek to have real social impact.
The £100m will help fund Andium’s ongoing development programme which is now focusing on the delivery of new family homes across the Bridging Island Plans sites. Andium is actively engaged with landowners and developers and, subject to positive progression on these sites, anticipates developing more than 250 new homes within the next four years.
This was Andium’s first issuance in the private placement market, receiving strong interest from across the UK and North America, demonstrating confidence in Andium and its plans for delivering homes for Islanders.
Lindsay Wood, Chief Finance and Operations Officer for Andium Homes said:
“We are delighted to have secured this additional funding, it’s a testament to the strength of Andium’s business model and our ability to adapt to the challenging market conditions, whilst continuing to deliver much needed new homes for Islanders.
I am incredibly proud of the professionalism and values of the Andium team. This is an example of us working together at our best to fulfil our commitment to helping as many Islanders as possible to access our homes either through social rent or affordable purchase.
Andium has delivered over 1,100 new homes since it incorporated 10 years ago, and has a further 619 new homes in construction, with more homes planned across the Bridging Island Plan fields in the coming years.
I am also pleased to have worked with an excellent team at Ernst & Young Debt Advisory, HSBC, Lloyds, O’Melveny & Myers LLP and Bedell Cristin Jersey, each contributing to a successful outcome for the deal.”
Giles Barling, Partner, EY Debt Advisory said, “We are delighted to have supported Andium and its fantastic management team on another successful financing exercise for a debut Social designated US Private Placement issuance. EY is proud to be Andium’s retained debt advisor and to support the management team on achieving its objective to provide high quality affordable homes for Islanders who need them most.”
Aline Ayotte, Head of Commercial Banking for HSBC, Channel Islands and Isle of Man said: “We were delighted with the interest shown by so many investors in Andium and its plans to deliver more high-quality housing for the benefit of Islanders. We see their commitment as a vote of confidence in Jersey’s future.”
Matt Juniper, Lloyds’ Head of Fiduciaries, Funds & Commercial within the Crown Dependencies said: “We appreciated the opportunity to work with the Andium team on their first capital markets transaction. The successful outcome reflected Andium’s clear sense of social purpose, proven track record and long-term strategic role in delivering affordable and sustainable housing on the island.”
Andrew Weiler, Partner in O’Melveny’s London office, said: “Navigating Andium through the legal process on their debut USPP has been a privilege, knowing how Andium will be using such proceeds to further its mission to provide affordable social housing.”