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Street scene in Saffron Walden, Essex, England.

Case study:

Saffron Building Society

About Saffron Building Society

Saffron Building Society is a UK‑based mutual financial institution that provides savings, mortgage, and financial services to individuals, families, and businesses. Founded in 1849, the Society operates as a member‑owned organisation, meaning it is run for the benefit of its customers rather than external shareholders. Its head office is located in Saffron Walden, Essex, with a regional branch network across Essex, Suffolk, and Hertfordshire.

 

The Society offers a range of savings accounts, residential mortgages, business savings products, and financial advice services, with a strong emphasis on personalised customer service and financial wellbeing. As a mutual building society, Saffron reinvests profits back into improving products, rates, and services for its members. It places significant importance on community engagement, ethical lending, and supporting local economies. It is regulated by the PRA and the FCA.

Our work with Saffron Building Society

Allia C&C was mandated to arrange a private placement for Tier 2 capital. This was the first publicly listed Tier 2 issue for a mid-size building society which completed in April 2024.  We advised Saffron on the process and coordinated the timetable to execute. Allia C&C organised the roadshow for institutional investors, receiving bids, and advising on the legal framework with the selected lender.

The impact

Saffron issued £15m of 12.5% Tier 2 bonds with a final maturity of 10.5 years and a non-call period of 5.5 years. The issue is listed on the International Stock Exchange in Guernsey. The issue included £11m of bonds sold to a range of institutional investors, wealth managers, family offices and high net worth individuals. Meanwhile, £4m have been retained for sale as additional capital is required.

“This transaction provides the Society with its desired level of regulatory capital, allowing the Society to continue its managed growth strategy while supporting the investment into technology and change projects. We were delighted with the engagement with the Allia C&C team and thank them for their support."

Maurice Mills, Chief Financial Officer at Saffron Building Society