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Banks & Debt

Robust Financing Structure

NewRiver has a robust financing structure. We raise debt from a variety of major global banks with a spread of maturities in order to provide significant, secure long-term financing for Company activities and to mitigate risk. 

Debt Strategy 
At NewRiver we have a straight forward debt strategy focused around conservative gearing at a low cost whilst maintaining close relationships with our corporate banks. We want to generate strong sustainable returns for shareholders and to do that believe our Loan to Value ("LTV") ratio should be at or below 50%. The Company may take on specific projects, acquisitions or joint ventures that justify a slightly higher LTV but on a proportionately consolidated bases (including joint ventures) the LTV target is below 50%. 

The Company continues to apply a hedging strategy which is aligned to the property strategy. To demonstrate this, at our last reporting date, 30 September 2016, borrowings were 97% hedged against interest rate risk (March 2016: 93%), 51% of all borrowings were fixed whilst 46% were capped. This provides interest rate protection whilst the hedging strategy allows the Company to benefit from a low interest rate environment. 

Gearing and Loan to Value
As at 30 September 2016 balance sheet gearing was 54% (March 2016: 29%) giving us firepower to draw existing undrawn facilities or securing alternative sources of debt. The Company's LTV was 38% as at the last period end, 30 September 2016. 

Our Key Banking Relationships:

  • HSBC Bank Plc

  • Barclays Bank Plc

  • Santander UK Plc

  • Lloyds Bank Plc

  • AIG

  • DekaBank