London housing association Metropolitan Thames Valley Housing is set to raise £250m in new funding through a 15-year sustainable bond issue, which will be used to boost its development programme.
The new funding will boost the organisation’s liquidity to deliver sustainable homes. Subject to issue on 28 July, the bond will raise £250m at a coupon rate of 1.87%.
MTVH owns or manages more than 58,000 homes across London, the South East, East Midlands and East Anglia and provides care and support services.
It plans to spend £2.1bn on building a further 6,000 new homes during the next five years, 80% of which will be for affordable rents or shared ownership.
The housing association is aiming to achieve net zero carbon by 2050, with all new homes meeting a minimum EPC B standard, and EPC C for existing homes.
Geeta Nanda, chief executive of MTVH, said: “It will support us to meet our ambitions that everyone should have a home and the chance to live well and to improve the sustainability of our new and existing homes to help tackle the climate emergency.
“Our commitment to sustainability in how we are building the new homes that the country so desperately needs was really welcomed by investors. We have a strong track record across the entire ESG agenda, but with this new resource we can do even more.”
The news comes after MTVH agreed a sustainability-linked £50m revolving credit facility with BNP Paribas in December last year, in what is believed to have been the first three-year risk-free rate facility linked to sustainability in the sector.
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