Finding commercial finance

1. Finding commercial finance Mark Ogden Triodos Bank Relationship Manager Community Land Trusts 2010 29 June 2010

2. Who are we? • Formed in 1968 in the Netherlands to use money in a socially conscious way. We only lend money that we have had deposited with us to projects that make a positive difference to society/the environment • We are completely transparent, a list of all projects we lend to is published and available online. • We have grown steadily in Europe with the UK operation opening in 1995 • Now in The Netherlands, Belgium, UK, Spain and Germany • We also lend in France and Ireland and through like minded institutions have a presence in 33 other countries.

3. 2009/10 Highlights • Funds entrusted to the Triodos Group grew by 30%, to EUR 4.9 billion. Customer numbers increased to 242,000. • Lending, exclusively to sustainable organisations, was up by 31% to EUR 1.7 billion. • Net profit EUR 9.5 million. • Our capitalisation and liquidity is very high compared to the main banks

4. Which CLT’s have we, or are in the process of funding? • The Holy Island of Lindisfarne Community Development Trust • Stonesfield Community Land Trust • High Bickington Community Property Trust • Wickham Community Land Trust

5. “Back of a fag packet” v well thought out balanced proposal • A plea – no bank likes the back of a fag packet approach! It wastes time and paints a poor picture of the people involved and the project • Each bank will have a differing requirement for information needed to assess but a well thought out and presented proposal is a good starting point

6. Who, what and where? • A good basic starting point for putting together a proposal not only for a lending assessment but for your appraisal of the project too!

7. Who? • Legal entity – charity, company limited by guarantee? • Details of the people involved in the CLT – CV’s • Succession – So your here now – but who will continue? • Professional team – project manager, architect, solicitors, QS, valuer and contractor. • Contractor – financial due diligence, ability to perform and track record on other projects

8. What? • Size of development – number of units / type. • Planning outline / final – conditions, section 106 (mortgagee in possession). • All to be let / sold / mixture • Value before, during and after • Costing for the build – who by and testing of them

9. Where? • Where is it? • Need in area – survey evidence for demand – type of demand – intermediate rental, shared equity. • Part of larger scheme • Impact on local community

10. Number crunching • Accounts for the entity • How much do you need and over what term? • Input and sources – local capital raising, grants or other – timescales • Development cashflow – reductions when and where from • Long term cashflow – repayments – rental and other income. • Sensitising the cash flows – what if’s? (the “if it can go wrong it will go wrong principle” – and who picks up the pieces!)

11. And then? • Probably further questions / clarification • Loan approval process • Loan offer • Then the hard work starts! Valuation / legal documentation • Drawdown – monitoring

12. Triodos Bank NV (incorporated under the laws of the Netherlands with limited liability, registered in England and Wales BR3012). Authorised by the Dutch Central Bank (DNB) and regulated by the Financial Services Authority (FSA) for the conduct of UK business. Registered office: Brunel House, 11 The Promenade, Bristol BS8 3NN