Stonewater agrees new £200m sustainability-linked loan

Under the terms of its new loan Stonewater will be measured against three KPIs, which if achieved will mean a discount on its interest payments.  

One relates to retrofitting its existing stock to ensure it is going “above and beyond current minimum regulations” so that all of its properties are at least Energy Performance Certificate Band C earlier than the government’s required target of 2030.

Another will see the landlord aim to boost the energy efficiency standard of its new homes to beyond minimum planning regulations, with a “high percentage” of homes reaching SAP 86 and above. 

Stonewater will also look to secure a ‘platinum’ rating for the SHIFT sustainability framework, an independent accreditation scheme that measures organisations against environmental targets. The landlord currently has a ‘gold’ SHIFT rating.

Anne Costain, chief financial officer at Stonewater, said: “This is an important agreement for Stonewater as it continues the progress we are making towards more affordable, lower-carbon homes for our customers.”

She added: “It is also a clear demonstration of the financial strength of our organisation, which allows us to focus on existing customers, while delivering much-needed affordable homes for others in society.”

In February, Standard & Poor’s (S&P) downgraded Stonewater’s credit rating to ‘A’, with a negative outlook, based on its increasing investment in its existing stock and development. 

However the landlord retained its G1/V1 status from the Regulator of Social Housing last November, despite a raft of downgrades due to the current economic climate. 

In its last reported full year to March 2022, Stonewater saw its surplus halve to £23.9m due to a jump in spending on maintaining and operating its homes. The group’s total debt at year end rose to £1.7bn, with £472m undrawn. 

Earlier this month, Stonewater announced that it was in talks to take on 1,600-home Mount Green Housing Association as a subsidiary.