Finance

Caledonia Housing Association secures £75 million to build sustainable homes



Caledonia Housing Association has secured £75m in funding to build more sustainable housing and become carbon neutral.

The private placement funding from NatWest will be used to construct more than 500 energy efficient new homes.

The transaction is Caledonia’s first private placement and also its first source of sustainable funding.

Despite challenging market conditions, the housing association’s relative stability meant that investors offered 20 to 35 year maturities and a framework of funding deferrals up to 44 months.

Leigh Grubb, director of finance and governance at Caledonia Housing Association, said: “Providing affordable and energy-efficient housing is central to our strategy, and the completion of this funding package is a significant milestone.

“It provides an opportunity for investors to support our ongoing housing development programme as we continue to play a part in meeting the overwhelming need for high quality social housing in Scotland.

“This funding exercise also underlines the commitments the association has already made to its broader sustainability agenda and we are pleased to have the support of our new investors as we set out to deliver on our key goals.”

George Flynn, vice president for financing solutions at NatWest, said: “This has enabled Caledonia to develop strong and supportive investor relationships and a funding package that is closely aligned to their business plan requirements, achieving their core financing objectives.”

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