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Two major banks back landlord with £127m sustainability-linked loans despite ‘growing scepticism’

Tewkesbury-based landlord Bromford has secured two new sustainability-linked revolving credit facilities worth £127m with two UK banks.

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Imran Mubeen, head of treasury at Bromford
Imran Mubeen, head of treasury: “Some of our peers have chosen to drop sustainability linkage on their new facilities, but we believe that SLLs can endure” (picture: Bromford)
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Two major banks back landlord with £127m sustainability-linked loans despite ‘growing scepticism’ #UKhousing

Tewkesbury-based landlord Bromford has secured two new sustainability-linked revolving credit facilities worth £127m with two UK banks #UKhousing

The 46,000-home association said it had secured the funding with Lloyds Bank and Barclays despite “growing scepticism over the long-term viability of sustainability-linked loans in our sector”.

With homes across the West Midlands and West of England, Bromford said the five-year deals will help finance its ongoing investment in new and existing homes and deliver its sustainability objectives.

A total of £75m will be provided by Lloyds and £52m with Barclays. Both deals are tied to Bromford reducing its Scope 1, 2 and 3 carbon emissions by 2028.

The landlord explained that it had recently decided to pause the reporting of its carbon emissions as the landlord recognised challenges in its data and the importance of establishing a more accurate baseline of carbon emissions data through independent third party verification.


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Under the terms of the agreement with Lloyds Bank, Bromford will also measure the number of new social rent homes it builds over a four-year period.

In November, the landlord announced it was on track to deliver its annual housing target after completing 472 new homes in the first half of 2023.

Imran Mubeen, head of treasury at Bromford, said: “We have now delivered over £350m of new funding this year, all through our sustainable finance framework, which will enable us to support our customers through the rising cost of living; retrofit our existing homes as we continue to pursue our own decarbonisation agenda; and deliver 12,000 new low-carbon affordable homes by 2031.

“We understand why there is growing scepticism over the long-term viability of sustainability-linked loans (SLLs) in our sector as the requirements of the Loans Market [Association] now demand even more commitment, disclosure and investment from housing associations.

“Some of our peers have chosen to drop sustainability linkage on their new facilities, but we believe that SLLs can endure if the demands of the regulator and funders are proportionate to the potential savings offered, which we can reinvest into our communities.”

Mr Mubeen said he believes that funders need to recognise the inherent social value and positive environmental impact the sector delivers through its core business, in contrast to other sectors who try to prove their environmental, social and governance (ESG) credentials which are less obvious and direct.

The Barclays deal is also linked to a key performance indicator that is related to Bromford achieving a customer advocacy score of 87.5% by March 2028. The score was 83% in 2022-23.

Helen Lloyd, head of insight at Bromford, said: “For our customers to thrive in their homes it’s important that we ensure we provide the best possible service that we can, and linking our advocacy score to this Barclay’s loan will ensure that we continue to strive to do this over the years ahead.”

Legal advice was provided to Bromford by Trowers & Hamlins and by Addleshaw Goddard to the two funders.

Alison Gray, director of public sector debt finance at Barclays, said: “The Barclays social housing team are delighted to have worked with long-standing client Bromford Housing in the delivery of a new sustainability-linked RCF [revolving credit facility] line.

“Importantly for both Bromford and Barclays was the introduction of meaningful measures, directly reflecting Bromford’s ESG strategy and linking to customer advocacy and Scope 1, 2 and 3 emission reductions.”

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