L&Q shifts more debt to SONIA as total tops £1bn

Housing associations have been moving debt to SONIA as part of the transition from LIBOR. In March last year, Riverside became the first housing association to complete a loan known to incorporate SONIA.

The deadline for registered providers to transition loans to the new interest rate benchmark is this December.

L&Q has also extended by a year an existing £125m revolving credit facility (RCF) it has with Lloyds, as it works on a new five-year strategy. The length and rate of the existing RCF was not disclosed.

Martin Watts, director of treasury at L&Q, said the new strategy gives “the flexibility to prioritise safety, quality and jobs, while retaining ambitious long-term goals to tackle the national housing crisis and climate agenda”.

In March this year, Fiona Fletcher-Smith, L&Q’s new chief executive, revealed that the group was relaxing its stated aim of delivering 100,000 new homes over the next 10 years.

Previously L&Q had announced a “pause” on new scheme approvals as it addressed quality issues and focused on ongoing fire safety works.

L&Q is also planning to publish an environmental, social and governance financing framework that will set out its approach on the agenda.