Trowers & Hamlins advises Catalyst on a new £50m Social Loan with Sumitomo Mitsui Banking Corporation
The Banking & Finance team at international law firm Trowers & Hamlins have advised Catalyst Housing Limited on their first social-performance linked loan. The new £50m revolving credit facility with Sumitomo Mitsui Banking Corporation (SMBC) incorporates a margin reduction if Catalyst meet set targets to assist customers with maximising income. Outcomes will be reported in Catalyst's annual accounts.
The loan is one of SMBC's first social performance linked loans in the housing sector and aims to further UN Sustainable Development Goals 1 (No poverty) and 8 (Decent Work and Economic Growth).
Michaela Booth, Director of Corporate Finance said:
"At Catalyst our investment in our communities is a key part of staying true to our social purpose. Our Catalyst Communities team help our customers with income maximisation through finding decent employment aiming to mitigate the risk of poverty. This new funding from SMBC fits perfectly with our commitment to investing in our communities."
Eleanor James, Trowers partner who worked on the deal said:
"We are always delighted to work with the team at Catalyst and it has been really rewarding working with them to frame this social performance metric in the context of an exciting new funding stream for the sector."
Danny O'Brien led the negotiation of the new funding agreements. SMBC were advised by Addleshaw Goddard.