South Yorkshire land regeneration company Harworth Group has announced a new £200m finance facility to help it double the size of the business.
The Rotherham group, which specialises in regeneration schemes for sustainable development and investment, has agreed a new senior debt package comprising a five-year £200m revolving credit facility, plus a £40m uncommitted accordion option, provided by Natwest, Santander and HSBC.
The facility replaces Harworth’s previous revolving credit facility with Natwest and Santander, which was increased from £130m to £150m in 2021 and was due to expire in 2024.
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The group said the new package is aligned to its strategy to double the size of its business over the next five to seven years, providing significant additional liquidity and flexibility.
Lynda Shillaw, chief executive at Harworth, said: “Harworth’s strong balance sheet and prudent gearing is one of the key enablers of our ambitious growth strategy.
“This new debt package, which adds another established institutional lender to our banking group, will provide Harworth with additional firepower and flexibility as we step into this strategy and deliver our purpose of creating places where people want to live and work.
“I would like to thank Natwest and Santander for their continued support, and to welcome HSBC.”
To deliver its strategic plan, Harworth has adopted a target net loan to portfolio value at year end of below 20%, with a maximum year end net loan to portfolio value of 25%.
The group said it will continue to use site-specific development and infrastructure loans alongside the main banking facilities to support the revised strategy.
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