You are viewing 1 of your 1 free articles
North East landlord secures £85m sustainability-linked loan from Legal & General
Believe Housing has agreed an £85m private placement with LGIM Real Assets – a subsidiary of Legal & General – the pricing of which will be linked to the housing association’s energy transition.
The 18,000-home association will use the funds to refinance existing debt, deliver new homes and invest in existing homes.
Legal & General said the investment reflects the investment manager’s commitment to the environmental, social and governance (ESG) agenda. The firm highlighted the fact that Believe recently became the sector’s first organisation to achieve the Carbon Neutral International Standard.
The deal is the latest in a recent spate of sustainability-linked deals including a £100m loan from NatWest to Clarion.
Legal & General now has more than £1.5bn invested in the UK affordable housing sector.
READ MORE
Alan Smith, executive director of investment, growth and performance at Believe, said: “This funding will guarantee that our vision of a life without barriers can be brought to more people right across the region.
“It’s great news for us, and the affordable housing sector as a whole, that major private sector funders share our passion for doing the right thing for customers, for the business and in this case for the environment too.”
Steve Bolton, head of corporate private debt for Europe at Legal & General, said: “We’re delighted to place decarbonisation firmly at the centre of the investment, rather than something that’s talked about on the sidelines.
“Legal & General is uniquely placed to invest annuity money into the UK economy, supporting its long-term pension commitments and creating real assets which provide jobs, housing, and spur economic activity.
“Believe Housing marks yet another milestone for Legal & General’s backing for the North East, having recently committed £100m and £350m to landmark regeneration projects in Sunderland and Newcastle respectively.”
Sohail Singal, associate director at Chatham Financial, who led the transaction, said: “The strong demand from investors during the bidding process is testament to Believe Housing’s unique credit story. Furthermore, the notes, which are sustainability-linked, will support their desire to grow and deliver a positive ESG impact and continue to change people’s lives.”
Sign up for our development and finance newsletter
Already have an account? Click here to manage your newsletters
