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Banks & Debt

Debt Strategy

At NewRiver we have a straightforward and effective debt strategy, underpinned by our conservative Financial Policies and facilitated by strong and longstanding relationships with our key corporate banks. 
Following our transformational unsecured refinancing which we completed in August 2017, we have £430m of unsecured facilities, which have reduced our cost of debt and increased our maturity, as well as £165m of secured debt facilities.

Gearing and Loan to Value

Our Financial Policy is to maintain a proportionally consolidated Loan to Value (“LTV”) of below 50% in the medium term. In the near term, we do not believe that our Loan to Value ("LTV") ratio should exceed 40%, but by setting our Financial Policy at up to 50% LTV we have the ability to take on specific projects, acquisitions or joint ventures that will generate sustainable cash returns for shareholders and that could justify a slightly higher LTV.
As at 31 March 2017 our LTV was 37%.
 

Hedging

We continue to apply a hedging strategy which is aligned to our property strategy. To demonstrate this, at our last reporting date, 31 March 2017, borrowings were 97% hedged against interest rate risk (March 2016: 93%). This provides interest rate protection whilst the hedging strategy allows the Company to benefit from a low interest rate environment. 

Our Key Banking Relationships:

  • Barclays Bank Plc

  • HSBC Bank Plc

  • The Royal Bank of Scotland plc

  • Santander UK plc

  • AIG


  Our Policy March 2017 March 2016 March 2015
 Balance Sheet Gearing  <100%  52%  29% 49% 
LTV   <50%  37%  27% 39% 
 Net Debt (£m)    417.9  261.7  251.4
 Interest Cost    3.5%  3.7%  3.8%
 ICR >2.00x   4.5x 4.3x  3.9x 
 Weighted Average Maturity (yrs)   2.5   3.5 4.6 
 Net Debt/ EBITDA  <10.0  5.5  4.2  8.4