PA Housing raises £400m using pioneering sustainable funding approach
2021 - May, Latest news
PA Housing has become one of the first housing associations to use a sustainable finance approach to secure new investment.
We launched our ‘Sustainable Finance Framework’ (SFF) with potential investors earlier in May, then used this to issue a £400million bond. The bond was very popular with investors, meaning our interest costs are incredibly low – just over 2% – giving excellent value for us and our customers.
According to industry publication, Social Housing magazine, we were just the third housing association in the country to issue a ‘sustainability’ bond. This means we have promised investors we will use their money to fund certain projects that will deliver sustainable benefits.
Our SFF approach aligns with the United Nations’ Sustainable Development Goals and will allow investors to demonstrate their funds are being used to deliver key aims such as more energy-efficient, social homes
As well as supporting our investment in improving existing homes, the £400million will also contribute towards our target of building 6,000 affordable homes by 2030.
Simon Hatchman, Executive Director – Resources, at PA Housing, said:
“This is a really important moment for PA Housing. As a not-for-profit social housing provider, we have the potential to make a profoundly positive impact on people’s lives and we intend to do all we can to make this a reality. “By raising funds through our new Sustainable Finance Framework, we are ensuring we use our strong balance sheet to secure competitive funding from a range of investors. This allows us to invest more in improving our existing homes to make them cheaper to live in and build 6,000 more social homes to high energy-efficiency standards by 2030. The funding will also enable us to invest in wider estates infrastructure, including electric vehicle charging points, recycling facilities and improvements to public space.”
“We are very pleased with the outcome of this transaction. As a proud BAME housing association, it has been encouraging to see the extent to which our BAME background resonated with investors keen to see broader representation in leadership and board membership. This influenced our decisions on the allocation process.”
We're grateful to our partners at Lloyds Bank, Barclays, Devonshires and Sustainalytics who supported us on the project.
You can find out more about how we work with our investors by clicking below: