Redrow agrees £250m banking facility

Housebuilder Redrow is seeking further land for development after agreeing a new £250m credit facility with a syndicate of five banks.

The new deal for the group headquartered at Ewloe near Chester increases its credit facility by £50m.

Redrow says the four and a half year revolving credit facility matures in March 2018.

"This larger facility gives the group debt capacity for further investment in land as it continues to grow," the group reported. "Both the upfront and ongoing costs of the new facility are lower than the previous facility, while the covenant package remains unchanged."

There are five banks within the syndicate, three existing relationship banks – Barclays, The Royal Bank of Scotland and HSBC – together with two new banks, Lloyds Bank Commercial Banking and Santander.