Client stories

NatWest supports Ibstock Plc in £225m refinancing process

At the heart of building

Ibstock plc is a leading UK manufacturer of clay bricks and associated clay and concrete building materials.

In January 2021, Ibstock became the first building products manufacturer in the UK to procure 100% of its electricity from renewable sources, enabling it to make significant steps in reaching its sustainability roadmap target of a 15% reduction in CO2 per tonne of production by 2025. 

Ibstock is also investing £50m to create the UK’s first automated brick slip systems factory in Nostell, West Yorkshire, which incorporates the latest manufacturing technology to deliver a very significant reduction in carbon – in combination with high-quality offset projects, this will result in Ibstock producing a net-zero carbon brick slip; believed to be a first in the market.

Refinancing of group borrowings

NatWest has supported Ibstock Plc in the refinance of its existing £215m revolving credit facility (RCF), which not only diversified its credit sources, but achieved a significant extension to the group’s debt maturity profile too.

The existing facility has been replaced with a £100m Private Placement (provided by Pricoa Private Capital), with maturities between 7 and 12 years, and a £125m RCF provided by a five-bank syndicate – of which NatWest is one. The RCF has a maturity of four years, with a one-year extension option. The new facilities will provide an efficient, long-term funding platform to support the group’s investment for growth.

Focusing on sustainable innovations

Steve Simpson, NatWest commented: “We’re excited to have been able to support Ibstock with a new revolving credit facility, which will help them to continue focusing on their medium-term plan. As a major lender to UK business, we’re committed to helping companies like Ibstock deliver solutions for today and tomorrow. This transaction is also a great example of working across teams and pulling together the right people at the right time to achieve the best outcome for our customer.” 

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