1. Morhomes the future of financing?

2. Transforming the HA funding market
Meeting the government’s challenge
Borrowing more efficiently
HAs taking control

3. MORhomes Created by HAs Owned by HAs Run for Benefit of HAs
60+ HA sponsor/ shareholders

4. Tackling both ends Addresses all the issues for borrowers
Ticks all the boxes for investors
Addresses all the issues for borrowers

5. investor Benefits One stop shop for HAs Benchmark size, repeat issues
Geog/ size/ risk spread
Credit policy
Financial structure (loss buffers)
Government support
Social bond programme – first ever!

6. Finance Structure

7. Nomination & Remuneration
Governance Structure
Shareholders
Board
Borrower’s Advisory
Group
Committees
Audit
Credit
New Issuance
Nomination & Remuneration
Corporate Code
Constitution
Covenants
Information
Memorandum of Association
Socially Responsible Investment

8. borrower benefits Price Simple fast process and documentation
Reclaim ‘HA premium’
Economies of scale on issue/ legal costs
Simple fast process and documentation
No financial covenants
Minimal restrictions on use
Dividends back to sector
Cut out the middleman

9. Ha Bonds trade at higher yields to equivalent rated corporate bonds
Morgan Stanley

10. Other benefits
These benefits produce a range of direct and indirect savings
1. Speed of Access
Reduces need for excess liquidity, take advantage of attractive market opportunities
2. Certainty of price
Borrowers determine cost of debt rather than taking what they are offered
3. Flexibility on amount
Reduces cost of carry, eliminates excess liquidity, improves debt management
4. Flexibility on maturity
Optimal place on the yield curve, build cost efficient repayment schedule
5. Certainly of access
Reduces need for excess liquidity, increases opportunity to borrow when price is good
6. Security efficiency
Can raise and use debt immediately it is needed rather than wait to charge security
7. Security flexibility
Allows efficient use of assets in expanding the business
8. User friendly docs
Cuts cost of borrowing, speeds borrowing process
9. Credit Process
Quick, predictable access to funding, reduces cost of managing debt portfolio
10. Allocated debt limits
Reduces uncertainty and requirement for liquidity

11. Platform ready Outsourced model Operating processes Credit process
Efficient
High quality
Risks managed
Operating processes
Credit process
Documentation
Rating
Lead managers/ dealer group
Ready for issue
Financial Adviser -
JJCRA
Legal Counsel
EMTN -
Allen & Overy
Legal Counsel
Devonshires -
Audit -
KPMG
Governance
Wedlake -
Bell
Insourced
CEO
Board
Loan Platform
Credit Policy
Funding
Dealer
Group -
8 banks
Business Services & Tax
RSM -
Rating
agency -
S&P
Borrower Counsel – Trowers & Hamlin
Credit Validation –
Edison

12. Contact points
For more information or details on borrowing with MORhomes contact: Patrick Symington, interim CEO, at / Jennifer Ibbott, Executive Assistant,