Housing association Bromford has secured two new sustainability-linked revolving credit facilities with two UK banks worth £127m.
The Gloucestershire-based company will use the investment to finance its ongoing investment in new and existing homes and deliver on its sustainability objectives. The Tewkesbury landlord, which owns 46,000 hones across the West Midlands and West of England, has finalised five-year funding deals for £75m with Lloyds Bank and £52m with Barclays.
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
Both deals are tied to Bromford reducing its Scope 1, 2 and 3 carbon emissions by 2028. In its most recent trading update on September 30 2023, Bromford paused on the reporting of its carbon emissions as it "recognised challenges" in its data and "the importance of establishing a more accurate baseline" of carbon emissions data through independent third party verification.
Director of treasury Imran Mubeen said: “We’re delighted to have strengthened our existing relationships with both Lloyds Bank and Barclays who remain two of the leading funding banks for UK social housing. We have now delivered over £350m of new funding this year, all through our sustainable finance framework, which will enable us to support our customers through the rising cost of living; retrofit our existing homes as we continue to pursue our own decarbonisation agenda; and deliver 12,000 new low carbon, affordable homes by 2031. "
Under the terms of the agreement with Lloyds Bank, Bromford will measure against the number of new social rent homes it builds over a four-year period. Bromford will receive a discount on its interest payments if it builds 2,200 social rent homes by 2028. The Barclays deal is also linked to a key performance indicator (KPI), related to Bromford achieving a customer advocacy score of 87.5% by March 2028.
Ray Tierney, relationship director and regional head of housing at Lloyds Bank, said: “The team at Bromford’s commitment to investing in sustainable, affordable homes and the people who live in them is clear. We’re proud to support its continued development of energy-efficient properties across two large areas of the country, which is helping to accelerate the green growth of communities. Their work also aligns with our Group call, alongside our charity partner Crisis, for one million new social homes to be built over the next decade.”
Alison Gray, director of public sector debt finance at Barclays Corporate Bank added: “The Barclays Social Housing Team are delighted to have worked with long standing client Bromford Housing in the delivery of a new sustainability linked RCF line. Importantly for both Bromford and Barclays was the introduction of meaningful measures, directly reflecting Bromford’s ESG strategy and linking to Customer Advocacy and Scope 1,2 and 3 emission reductions.”
In the past 12 months Bromford has secured a £100m private placement with UK and US investors, a £50m funding partnership with LGIM and a £100m sustainability linked revolving credit facility with ABN AMRO to help support its strategic ambitions. The savings generated on the loans will be reinvested into projects that support Bromford’s customers and communities.
