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Large South of England landlord secures £75m ESG-linked loan
Vivid has borrowed £75m through a new ESG-linked loan, which includes a target related to its status with the English regulator.
The 35,000-home landlord has agreed the 10-year “sustainability-linked” facility with Nationwide Building Society, it said today. The interest rate on the loan was not disclosed.
Under the terms, Vivid is expected to meet certain environmental, social and governance (ESG) metrics, one of which is maintaining its G1 rating for governance with the Regulator of Social Housing. The Portsmouth-based group retained its G1/V1 status in February, following an in-depth assessment.
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Vivid said the loan agreement also has key performance indicators (KPIs) to underpin its “commitment to meeting housing need in a sustainable way”, without offering more detail. The KPIs also include “stretching targets” for Vivid’s tenancy support team, the landlord said.
It continues a trend of social landlords using their ESG credentials to raise extra finance to tackle a string of investment demands.
Vivid said it will use the funds to improve its existing stock and build more homes.
In its last reported full year, Vivid built 1,390 homes, making it one of the sector’s largest developers.
The landlord raised £110m through two private placements last summer and secured a £100m loan earlier in 2023.
As a result of the latest loan, Vivid now has total debt of around £1.9bn.
Jonathan Roberts, Vivid’s group treasurer, said: “This loan is the perfect complement to our existing debt portfolio, sitting between short-term [revolving credit facility] funding and longer-term bond debt.”
He added: “The facility is tightly priced and reinforces stretching ESG targets for us to deliver sustainable housing.”
Law firm Trowers and Hamlins, as well as Centrus, the financial advisory firm, worked with Vivid on securing the loan.
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