Borrowers - GB Social Housing

Why Borrow from GBSH?

GBSH loans provide the following benefits to borrowers:

Long dated maturities
Competitive fixed rates
Flexible financial covenants requiring less asset cover for stronger interest cover and gearing
Ability to substitute secured assets
No debt service reserve account requirement

Convenants

Asset Cover

EUV-SH basis	MV-T basis
minimum 105% – 140%	minimum 115% – 150%

Interest Cover

One Year Interest Cover	Three Year Rolling Interest Cover
minimum 105% – 110%	minimum 110% – 120%

Gearing (Total Financial Indebtedness as % of Asset Value)

Historic Cost	EUV-SH
maximum 65% – 70%	maximum 75% – 80%

Each Loan will include minimum asset cover, minimum interest cover and maximum gearing covenants.

Subject to GBSH credit approval, these covenants could vary across borrowers and borrowers may vary covenants within the agreed ranges (subject to Issuer consent) annually. If interest cover is reduced and/or gearing increased, additional asset cover will be required by GBSH.

Borrowers may elect not to have any interest cover and gearing covenant in any given year but will then be obliged to provide a minimum 140% (EUV-SH) asset cover and also comply with a minimum net income test (annual net income on charged properties equal to or greater than annual interest payable on the loan).

All covenants will be tested by GBSH on an annual basis and monitored quarterly.