Bromford Builds 1300 Homes with Green Loan
Bomford secures £200 million sustainability-linked loan from NatWest.
Funds will be used to build 1,300 new affordable homes in the West Midlands and West of England.
Loan incentivises achieving social housing targets and reducing carbon emissions.
Bromford, a leading developer of affordable housing in the UK, has partnered with NatWest, a prominent lender in the housing sector, to secure a £200 million sustainable loan.
With the help of this funding, Bromford will continue to fulfill its mission of offering communities in the West Midlands and the West of England high-quality, reasonably priced housing.
Focus on Social Housing and Sustainability
The loan is structured with a focus on social impact. Most of the funds will be directed towards building 1,300 new affordable homes, focusing on social rent properties. This aligns with Bromford's track record as the country's top builder of social rent homes in 2023-24.
Moreover, the loan has a sustainability component that motivates Bromford to meet particular objectives. Providing new social housing and lowering the organisation's carbon footprint are two of these objectives (Scopes 1, 2, and 3). If these goals are met, Bromford's interest rate may be lowered. This expands on their earlier work with NatWest on the first green loan for the industry in 2019, which was aimed at increasing energy efficiency.
Diversifying Funding and Strategic Partnerships
This agreement reflects Bromford's proactive approach to acquiring capital. Through their partnership with NatWest, they have established a valuable cooperative relationship in sustainable development, in addition to obtaining competitive financing. Grant Vaughan from Newbridge, Bromford's treasury advisor, spoke about the strategic benefits of this loan, including its ability to leverage market conditions for significant interest savings.
Looking Ahead
This £200 million loan is part of Bromford's broader strategy to secure over £650 million in sustainable finance within the past year. These funds contribute to various objectives outlined in their Sustainable Finance Framework, comprising not just affordable housing development but also initiatives like employment training and gender pay gap reduction.
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Source: Bromford
