Aggregator converts £1bn of issuance to social bonds under new framework

Piers Williamson, chief executive of THFC, said: “We’re delighted to be publishing this framework, which reflects THFC’s history of social impact while ensuring we’re on the pulse of contemporary trends in impact reporting.

“This kind of reporting is fast becoming market convention, but more than that, it has a vital role in ensuring that the positive impact we and the sector make is heard loud and clear by the investor community.”

Vigeo Eiris rated THFC’s contribution to sustainability as ‘Advanced’, the highest category.

The framework’s provisions for use of proceeds, evaluation and selection of eligible loans, and monitoring and reporting were all considered by the research agency to be consistent with best practice in the market.

A growing number of sustainability bonds have been issued in the past few years, including two from Clarion Housing Group and most recently a £400m bond from PA Housing.

Fellow bond aggregator MORhomes has also sought to harness the growing interest in ESG by launching a sustainability bond framework, as reported by Inside Housing last year.

THFC has committed to reporting annually on its social impact based on the Sustainability Reporting Standard criteria. It will also make the transition to social impact data collection easier for its borrowers.

Mr Williamson added: “Even though THFC has been issuing bonds with a social purpose for over three decades, this framework is about recognising and adopting market conventions in a way that allows us to continue to deliver best value to our borrowers, while communicating our purpose as a sector.”