REDROW announced yesterday it has agreed on a new and larger £250m loan with its banks, in a further sign of growing confidence in the housing market.
The housebuilder said the four and a half year credit facility, which expires in March 2018, was £50m bigger than the existing facility it replaces, while costs were also lower.
“This larger facility gives the group debt capacity for further investment in land as it continues to grow,” chairman Steven Morgan said.
A syndicate of banks including Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Banco Santander provided the loan.
A number of housebuilders have refinanced of late, including Taylor Wimpey, which arranged a new £550m debt package last month, while Barratt Developments secured around £850m of loans in May.
Redrow and its peers have been stepping up growth as government measures like Help to Buy helped to fuel demand for more homes.