Wragge & Co's Banking and Finance team has assisted long-standing client Sanctuary Group in the securing of a £350 million loan from the European Investment Bank (EIB). The landmark deal is the first time that the EIB has agreed a direct loan to the social housing sector.

The transaction allows Sanctuary Group, which owns a total of 96,000 houses, to push ahead on a range of development projects across England and Scotland. Projects will include the affordable homes programme which will see 5000 new homes built by 2015, an extensive retrofitting programme and the building of new community facilities.

Wragge & Co successfully synchronised the EIB's documentary and commercial requirements with Sanctuary's other credit facilities and bonds including the pooled security structure.

Partner Chris Brierley, who led on the deal, said: "Securing this loan is an incredible boost for Sanctuary's investment programme. The loan breaks new ground for the EIB and required a great deal of ingenuity, commercial pragmatism and technical expertise to fit within Sanctuary's existing treasury structure. It is a great result for Sanctuary and the thousands of people who rely upon them and also for the local economies which will be boosted by the major programme of works that Sanctuary will now undertake."

Assisting Chris on the deal were solicitors Navin Prabhakar and Sandra Juozaitiene from the Banking and Finance team and Scottish law partner Jonathan Heaney of Burness Paull LLP in Scotland.

Craig Moule, chief financial officer of Sanctuary Group, said: "This is an important partnership for Sanctuary and we would like to thank Wragge & Co for their assistance in concluding the deal. Their considerable expertise with larger transactions ensured this ground breaking agreement was handled efficiently and effectively.

"The EIB is an ideal partner for Sanctuary. Not only are they a sizeable funder with excellent credit quality, they also share broader social aims, which include creating sustainable employment and operating in an ethical and responsible manner."

Wragge & Co's 22-lawyer Banking & Finance team provides a partner-led service and top-quality legal advice. Bringing a commercial and pragmatic approach to deals, the team advises banks, corporates, private equity companies and public bodies on a full range of domestic and cross-border instructions. Highlights include acting for HSBC Leveraged Finance on a multi-million pound private equity deal and previously helping Sanctuary with a £300 million bonds issue.