Progress Housing Group secures £80m funding package

In the same period, the landlord aims to invest £14.5m per year in its existing properties to ensure they meet net-zero, health and safety, and regulatory targets.

Andy Speer, executive director of finance and corporate services at Progress, said: “We are thrilled to have secured an £80m long-term facility with Danske Bank, which restructured an existing £50m revolving credit facility.

“This significant investment will refinance the group’s maturing debt and support our ongoing commitment to providing high-quality, energy-efficient homes that our customers are proud to call home. We are dedicated to reducing carbon emissions and creating a better environment for the future.”

Terri McCullagh, relationship director for social housing at Danske Bank, said: “We are really pleased to have agreed this new facility with Progress housing association and look forward to supporting the significant programme of refurbishment of its existing housing and development of new energy-efficient homes.

“Danske Bank continues to be committed to the social and affordable housing sector across the UK, and we are delighted to be able to announce such a significant transaction in England at a time when the need for housing is so acute across the country.”

This latest deal comes after research at the end of last month highlighted how sustainability-linked loans (SLLs) do not always give housing associations cost benefits that are “proportionate” to the work required to monitor and report against targets.

SLLs, which offer borrowers favourable loan terms in return for meeting key performance indicators related to sustainability, have been used widely in the social housing sector.

According to a survey carried out by consulting and financial services firm Newbridge Advisors, just one in 10 respondents thought the cost benefits of setting up and monitoring SLLs were comparable to the environmental, social and governance outcomes.