L&G signs £150m social loan for affordable housing

Legal & General has agreed a £150m social loan to fund the delivery of 5,500 affordable homes across England. The loan was arranged by BNP Paribas, HSBC UK, and SMBC Group, with each committing £50m. The deal was structured as a social loan, which is available on projects that help tackle pressing social issues such as the delivery of more affordable housing. And help accelerate the delivery of homes for social rent, affordable rent and shared ownership across the country. The loan is the first UK insurance syndicated “use of proceeds” social loan and adheres to the Loan Market Association’s Social Loan Principles. Chris Hewitt, financial director at Legal & General Affordable Homes, said: “In the last few years, Legal & General has committed over £1bn of its own retirement funds to these efforts, and they will be used alongside this innovative social loan structure. “This product reinforces our commitment to the sector, and our work to help reduce inequalities in communities across the country. While we are pleased with our progress, 1.4m households remain on social housing waiting lists across the UK. With a new government being formed, we hope the affordable housing agenda will be central to any new policy.” Laetitia Girolami-Boyer, sustainable finance markets director at BNP Paribas, said:“This collaboration demonstrates the power of sustainable finance to support affordable housing, wellbeing and community engagement. The alignment with the LMA Social Loan Principles catalyses best practice in the sector, and the transparency embedded into the loan is a further feature to ensure tangible social impact.” To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @EGPropertyNews Photo © High Level/Shutterstock