Stonewater agrees £200m sustainability-linked loan to help retrofit 36,000 homes
Lloyds Bank has granted Stonewater, one of the United Kingdom's most significant housing associations, a £200m loan tied to sustainability initiatives as part of their goal to have all 36,000 homes they manage in central and south-east England attain at least a C rating for energy efficiency by the end of the decade.
Stonewater, a housing provider to 78,000 individuals in the area, confirmed that they had refinanced their £125m finance facility with a bank, increased it by £75m, and set up a system where the interest rate depends on completing various green objectives.
The housing association noted that they had changed their financial facility to a loan based on sustainability, which would be judged on three objectives to acquire funding guarantees.
Stonewater aims to adjust its existing housing properties to go beyond current energy efficiency standards so that all of them reach the lowest EPC (energy performance certificate) level C before 2030, as per the government's targets, the entity stated.
The association also declared its intention to raise the energy efficiency standard of its new construction projects to surpass the minimum planning regulations.
Costain, the CFO of Stonewater, stated that the Loan Facility agreement with Lloyds Bank was a "significant arrangement" that would enable them to create "more cost-effective, lower carbon dwellings".
The financial robustness of our company is displayed and enables us to prioritize our current customers while providing affordable homes for those in need, she added.
According to Ray Tierney, the regional head of housing for Lloyds Bank, the next decade will be characterized by addressing climate change and providing quality housing to meet the demands of society.
Stonewater is at the forefront of satisfying its duties, and we anticipate aiding them as they aspire to be eco-friendly and help people throughout the United Kingdom.