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Bromford Flagship secures £150m of sustainability-linked funding
Bromford Flagship has secured £150m of sustainability-linked funding from HSBC UK to boost development of energy-efficient homes as well as investment in existing stock.
Bromford Flagship has secured £150m of sustainability-linked funding from HSBC UK to boost development of energy-efficient homes as well as investment in existing stock #UKHousingThe 82,000-home landlord said it has finalised a seven-year, £50m term loan and a five-year, £100m revolving credit facility (RCF) which “will support Bromford Flagship’s cash and liquidity requirements over the medium term”.
Both facilities are linked to sustainability KPIs, and the landlord is currently working to agree its own revised KPIs following the merger of Bromford and Flagship in February this year.
“The group is working collaboratively with its banking partners, including HSBC UK, to agree targets that are ambitious, achievable and aligned with its strategy,” the housing association said.
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Matthew Rose, Bromford Flagship’s director of treasury, said the housing association is pleased to have secured this “significant funding deal” with HSBC UK.
He added: “Their increase in commitments to the group demonstrates the strength of the relationship and their continued support for Bromford Flagship’s strategic objectives, which include the development of new, affordable homes, investment in existing homes and delivering high-quality services to customers.
“The term loan and RCF together provide additional cash and liquidity to our newly enlarged group as we scale up our investment ambitions, enabling us to maintain our strong, sector-leading credit profile.
“We are delighted that the facilities include links to sustainability KPIs, which are seen as a helpful enabler for meeting key targets and focusing attention on the fundamental drivers of sustainability in our organisation.”
Stuart Taylor, head of social housing at HSBC UK, said the landlord has a “clear growth strategy”, including its ongoing merger discussions with 40,000-home association LiveWest.
“This is great news for those communities where affordable housing is limited, and it will help get more people into their own homes,” Mr Taylor added.
Bromford Flagship’s recent half-year trading update revealed a £14m increase in turnover, and that it had completed the legal and technical steps to unlock £1.9bn of investment capacity as a result of the merger.
In June, the housing association issued its first £300m sustainable bond, which it said enables access to the additional £1.9bn of capacity.
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