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Three landlords agree loans worth £350m with bond aggregator
The Housing Finance Corporation (THFC) has announced £350m of new loans to three social landlords through its ‘Blend Funding’ vehicle.
The Housing Finance Corporation has announced £350m of new loans to three social landlords through its ‘Blend Funding’ vehicle #UKHousingThe bond aggregator has agreed a £150m loan to Vico Homes and two £100m fee facilities in instalments to Aster Group and whg.
This new lending will “support the delivery of new affordable homes and strengthen the long-term financial resilience of the social housing sector”, THFC said.
Blend Funding Plc was set up as a subsidiary of the bond aggregator in 2018 and has so far lent around £2bn to 33 borrowers.
THFC’s loan to Vico Homes, a 32,000-home landlord in the North of England, was funded through a £250m tap of Blend’s recent seven-year bond, with £100m retained to fund future drawdowns.
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The yield on this deal was just under 5% and it achieved an “all-in spread of 88bp over the gilt”, which THFC said reflects “strong execution” for Blend’s borrowers.
Blend has a total of £250m bonds retained meaning it can “respond rapidly to market opportunities” and provide housing associations with shorter maturity capital markets funding as an alternative to bank loans, according to THFC.
The two £100m facilities to Aster Group and whg will allow them to access funds “as needed” while only paying interest on the amount drawn.
David Brigden, senior commercial director at THFC, said Blend’s model allows the aggregator to “offer stable, flexible funding at scale, aligned to the long-term needs of housing providers”.
“Each of these transactions demonstrates the ongoing appetite for dependable capital that supports development plans while managing financial risk,” he said.
Neil Warren, executive director of resources at Vico Homes, said the “speed and flexibility through Blend” gives his organisation “confidence to keep moving forward” with its 10-year plan.
He said: “This funding isn’t just about growth. It’s about impact. At Vico Homes we’re creating more high-quality, affordable homes that make a real difference for families and communities.
“Blend plays a crucial role in giving us the adaptable, cost-effective capital we need to stay resilient and deliver on our promise, even in a challenging market.”
Paul Jeffries, director of treasury at Aster Group, said: “Through this £100m Blend facility, we have the flexibility to access long-term funding when market conditions are right, maintaining a strong, diversified funding portfolio and allowing us to continue investing in our homes and communities.”
Sangita Surridge, corporate director of finance at whg, said Blend is a “flexible, affordable liquidity option with an extended availability period” which includes the possibility of “multiple tranches”.
“This strategic approach will support whg’s development ambitions, ensuring that capital is available whenever it’s needed to drive growth and deliver new homes,” she added.
A 57,000-home London landlord raised funds through Blend earlier this year, amounting to a £250m loan.
THFC’s chief executive told Inside Housing at the start of this year that the organisation was looking to enlarge its Blend product.
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