A2Dominion secures £100m Lloyds loan
A2Dominion has signed a £100 million loan deal with Lloyds Banking Group which will be used to fund 1,000 affordable homes over the next four years.
The deal was concluded at the end of February and the loan brings LBG’s overall lending to the 33,000-home association to £370 million. The facility will be split between the association’s London and south east regions over a 25-year term.
A2Dominion can draw down the funds over the next five years. The deal matches the £100 million loan agreement between Waterloo Housing Group and Barclays concluded in February to support the construction of 3,000 affordable homes.
Tony Oakley, director of the social housing team at Lloyds Banking Group, said: ‘This is a relatively large deal considering other deals in the market and reflects our assessment of the strength of the group.
‘They represent good risk and the sustainability of their development programme made this possible. The organisation was not one of the associations bailed out by the HCA, which was another factor we took into account.’
Jill Green, assistant director of treasury services at A2Dominion, said the agreement made LBG its largest single lender.
The deal marks the first major loan agreed by LBG this year, after agreeing to provide £46 million worth of funding for a 1,342 stock transfer with Spire Homes in November 2009.
Mark Amis, head of social housing at LBG, said the loan deal with A2Dominion was the first of a number of agreements that would be announced in the coming months.
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