Purpose

To agree the terms of the £40m
additoinal loan and equity facility between the Council and i4B
Holdings Ltd as agreed by Cabinet on 13 October 2025.

Content

That the Corporate Director Finance and
Resources:
 
i)              
Approves the terms of the £40m facility to i4B Holdings Ltd,
as agreed by Cabinet on 13 October 2025.
 
ii)             
Approves the terms of the facility in (i) will comprise £32m loan and £8m
equity.
 
iii)           
Approves the terms of the loan agreement with associated
debenture.

Reasons for the decision

The Board of i4B Holdings Ltd have been in
discussions with the Council on increasing the facilities provided
by the Council and this agreement will allow i4B to take advantage
of a variety of borrowing tenures provided by the Public Works Loan
Board (PWLB).
 
Both parties are looking to commence a
£40m new facility consisting of capital and equity ratio
split of 80:20.
 
In February 2024, Cabinet approved a new loan
and equity facility of £40m for i4B Holdings Ltd for the
provision of PRS accommodation. The proposed terms between the
Council and i4B Holdings Ltd would allow borrowing within all
tenures provided by the PWLB.
 
In October 2025, Cabinet delegated authority
to the Corporate Director Finance and Resources to agree the terms
of the £40m loan facility to i4B.

Alternative options considered

Officers considered various options of revised
terms and loan repayment options and concluded that mirroring the
previous terms of 80% loan and 20% equity is most appropriate.