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Major landlord secures second £100m funding package in space of one month
A large South of England housing association has secured a £100m sustainability-linked loan with Dutch bank ABN AMRO.
Vivid, which manages around 33,000 homes, said the loan would support its objective to build and develop more energy-efficient and affordable homes.
As part of the deal, the landlord has agreed a three-year, £100m revolving credit facility with ABN AMRO, which it said would “provide continued working capital support”.
The pricing of the facility is linked to Vivid’s environmental, social and governance (ESG) agenda.
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The Hampshire-based landlord has committed to building at least 1,000 homes with Energy Performance Certificates of Band B or higher each year.
Earlier this month, Vivid secured a £100m flexible loan with aggregator Blend, which followed a £50m green loan with Barclays in January.
Sustainability-linked loans have become increasingly popular as social landlords try to meet net zero targets by decarbonising stock and building more energy-efficient homes.
Duncan Brown, chief financial officer at Vivid, said: “We’re delighted to work with a relatively new entrant to UK social housing, and we look forward to a long and productive relationship.”
Richard Smith, director of UK corporate client coverage at ABN AMRO, said: “We are excited to be starting this new relationship with Vivid and to be further extending our support to the UK social housing sector.
“Vivid’s strong credit and regulatory ratings, coupled with their sustainability ambitions, make them an ideal client for ABN as we look to expand in the UK and deliver on our own sustainability goals.”
In its most recent annual accounts – the year to March 2022 – Vivid reported a total debt of just under £1.5bn.
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