August 17th 2023
Lloyds Bank delivered £200m to help Stonewater growth
One of the UK’s largest housing associations has secured a huge lump sum in order to support its ongoing development programme.
Stonewater, which owns and manages around 36,000 homes that are largely based in the South has refinanced its existing £125m facility and increased it by £75m. Following this, the firm, of which is located in Reading, has also transitioned the facility to a sustainability-linked loan which will see it measured against three KPIs to receive covenants on its funding.
The first being related to retrofitting existing stock to ensure it is going ‘above and beyond the current minimum regulations’ so that all properties are at least EPC C earlier than 2030.
Following this, the second KPI will see the association look to increase the energy efficiency standard of its new homes to beyond minimum planning regulations, with a high percentage of homes reaching SAP 86 and above.
In addition, the organisation is currently rated as Gold via the independent SHIFT sustainability framework – an amalgamation of 15 separate ESG KPIs into one overarching score, and is looking to enhance its score as the years pass.
Anne Costain, chief financial officer at Stonewater, said: ‘This is an important agreement for Stonewater as it continues the progress we are making towards more affordable, lower-carbon homes for our customers.
‘It is also a clear demonstration of the financial strength of our organisation, which allows us to focus on existing customers, while delivering much-needed affordable homes for others in society.’
Ray Tierney, relationship director and regional head of housing at Lloyds Bank, said: ‘Tackling climate change and meeting demand for quality housing are issues that will define the next decade.
‘Stonewater is already taking the lead in meeting its responsibilities and we look forward to supporting them as the continue to be ambitious in being sustainable and helping communities across the UK.’
Image: Eduardo Soares
Local authority to provide funding for their largest-ever homes investment programme