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Gloucestershire Business News

Bromford and NatWest agree £200m sustainable finance deal

Tewkesbury-based housing association Bromford has finalised a new sustainable finance deal with NatWest.

The 50,000 home social landlord has secured a £200 million sustainability linked loan with NatWest.

It will enable Bromford to build 1,300 new affordable homes, furthering its commitment to providing affordable housing to communities across the West of England and West Midlands.

Imran Mubeen, Bromford's director of treasury, said: "NatWest have been one of our key strategic funding partners for several years. The speed and focus with which we have closed this deal is a testimony to our relationship and underlines the ongoing importance of bank lending in our sector. Ultimately, this means we can invest even more in our communities and customers."

Last year, Bromford completed 1,191 new homes, including 308 for affordable rent and 551 for social rent. According to Inside Housing's annual Biggest Builders survey, Bromford is ranked first in the country for the number of social rent homes completed during 2023-24 and has built more social rent homes than any other housing association in the country over the past four years.

Amanda Swann, director of development at Bromford, said: "With demand for affordable housing showing no signs of decreasing, we are committed to playing our part in tackling the housing crisis by continuing to build affordable homes. This loan from NatWest will allow us to continue our development programme to meet our ambition of building 11,000 new homes by 2032 with 65% at social and affordable rent tenures."

The loan with NatWest is linked to Bromford-led targets focused on delivering new social rented homes and reducing Scope 1, 2 and 3 carbon emissions. Bromford will receive a discount on its interest payments if it meets the targets associated with the loan.

Imran added: "Our shared vision with NatWest regarding sustainable finance created the first green loan in the sector in 2019, which focused on improving the energy efficiency of our homes and has helped to enable our decarbonisation journey with 89% of our homes now at EPC C or above.

"Importantly, the loan has the potential to generate over £1 million of interest savings if we successfully meet our sustainability targets."

Paul Eyre, head of residential and housing finance at NatWest Group, said: "Our funding support to Bromford forms part of our ongoing commitment to supporting the social housing sector and its delivery of affordable, safe and energy efficient homes. We announced an ambition earlier this year to provide £5bn of funding commitments to the social housing sector to December 2025."

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