Lloyds Bank agrees its largest sustainability loan with HA

News24 May 2022James Twomey

Platform Housing Group and Lloyds Bank have agreed a £235m sustainability-linked loan, which is the bank’s largest loan of this kind to the social housing sector.

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Platform and Lloyds Bank have agreed a £235m sustainability-linked loan, which is the bank’s largest loan of this kind to the social housing sector #SocialHousingFinance #UKhousing

Platform said that the funding would help it to deliver new affordable housing and decarbonise its existing portfolio.

The landlord will be measured by three KPIs to secure margin discounts on the funding. These are to improve the energy efficiency of its existing portfolio, increase the energy efficiency of all of its new build properties and invest in its communities by increasing the proportion of those undertaking apprenticeships each year.

Platform is the largest housing association in the Midlands, with a portfolio of around 47,000 homes.

“That means developing stock that is both fit for purpose and fit for the future is crucial. We’re proud that our ambitions cover a range of ESG [environmental, social and governance] objectives and will deliver a housing portfolio that benefits the communities we operate in across the region.”

The landlord plans to improve the fabric of its buildings and introduce low-carbon technologies to heat and power homes, with plans to move all of its homes to Energy Performance Certificate Band C and above.

With a target of building 1,500 homes a year, Platform said it aims to improve its Standard Assessment Procedure scores, hitting an average of A within the next five years.

Platform recently secured a £250m grant from homes England to develop around 4,600 homes, of which more than 25 per cent will be built using modern methods of construction.

Jatinder Dhaliwal, regional head of housing at Lloyds Bank, said: “Platform Housing is committed to enhancing its ESG offering to its communities and within the social housing sector and we’re proud to help the association on its journey.

“This funding will make a lasting impact on the quality and availability of housing across the Midlands and we’re looking forward to working closely with Platform as it delivers its objectives.”