7th May 2020 12:18
(Alliance News) - Countryside Properties PLC on Thursday said it will be reopening some of its construction sites next week after securing financing from the Bank of England.
The housebuilder said it has been confirmed as an eligible issuer for the BoE Covid corporate financing facility and has put in place a GBP300 million commercial paper programme to facilitate issuance under this facility, which will be used to provide standby liquidity, should that be required, the company said.
In addition, Countryside Properties said it has agreed to certain financial covenant revisions with the banking group for its existing GBP300 million revolving credit facility that will provide additional headroom and flexibility until the end of September 2022.
Turning to operations, the company said it had suspended all construction work on its sites since the end of March. Since then, the company said it has developed a new set of operating procedures for site activity which are compliant with Public Health England guidelines.
Countryside Properties said it has already started work to implement these changes and intends to reopen around 80% of its sites to construction from Monday next week.
"Securing this additional liquidity gives us the confidence to plan proactively for the future," said Chief Executive Iain McPherson.
"Our mixed-tenure business model, strong order book and the outstanding commitment and hard work of our staff throughout this challenging period, position us well for a return to construction activity and we are focused on ensuring we do this in a safe and orderly way," added McPherson.
Countryside Properties shares were trading 2.3% lower in London on Thursday at 385.60 pence each.
The company said it will report its half-year results on Thursday next week.
By Evelina Grecenko; [email protected]
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