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Large landlord agrees £200m deal under Affordable Homes Guarantee Scheme
A large housing association based in the South of England has secured a £200m loan from the Affordable Homes Guarantee Scheme (AHGS).
Large landlord agrees £200m deal under Affordable Homes Guarantee Scheme #UKhousingA large housing association based in the South of England has secured a £200m loan from the Affordable Homes Guarantee Scheme #UKhousingVivid will use the financing to deliver more than 1,300 new affordable homes.
The 36,000-home landlord said that around 850 properties will be for social and affordable rent, while around 500 will be for shared ownership.
The loan is part of a new 16-year bond series and achieved all-in rate of 5.4%.
Venn, which manages the AHGS on behalf of the UK government, said the series gives borrowers another tenor option under the existing scheme.
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Loans are funded by a bond issuance programme backed by a guarantee from the government, with the lower pricing passed on to borrowers.
Vivid previously secured a £185m loan in 2021 from the AHGS, which it said has funded the delivery of more than 950 homes so far.
Will Roberts, a director at Venn, said Vivid is “very successfully delivering quality homes in areas of high demand and need”.
He added: “We’re delighted to have worked with them again and tailor a new issuance to fit their needs with the selected tenor fitting their treasury plans.
“This also creates a complementary new point on our issuance curve which other borrowers will be able to use.”
Jonathan Roberts, group treasurer at Vivid, said: “This maturity fits perfectly into our debt portfolio and will significantly bolster our efforts to deliver much-needed affordable homes.
“The team at Venn has been patient, agile and a pleasure to work with while navigating a volatile market.”
In December last year, Nottingham Community Housing Association agreed a £100m loan under the AHGS, while Wythenshawe Community Housing Group received a £83.5m loan in the same month.
Investment manager Venn is part of the ESR Group, a Hong Kong-headquartered real estate services and investment firm.
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