Link Group, one of Scotland’s largest social landlords, has secured a £70m sustainability-linked funding package with Bank of Scotland to support its development programme for the next five years.
The agreement, which includes an existing £10.7m loan, puts in place a new five-year revolving credit facility of £60m.
Link Group financial director Nick Pollard said: “Now, more than ever, it is vital that organisations such as Link work with our partners in the financial sector to secure prudent funding streams.
“The new RCF borrowing is linked to sustainability loan terms, and therefore contributes to our sustainability objectives while generating a discount on the margins applied to the borrowing if we meet our sustainability performance targets in agreed areas.
“This agreement with Bank of Scotland has also brought some changes in financial covenants and relaxation of other loan terms which supported Link’s wider objectives.”
Melanie Russell, relationship director for social housing at Bank of Scotland, said: “Associations such as Link Group play an important part in ensuring the country has quality, sustainable social housing for generations to come. We are pleased to be able to support Link by providing this funding, as it will also help the organisation achieve its sustainability objectives over the next five years.”
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