Radius Housing has become the first Northern Ireland-based housing provider to secure a Green Term Loan.
The £20m loan, provided by Barclays, is funding part of a bigger £70m funding package from the bank, which Radius says it will use to increase its focus on sustainability across the organisation and improve its housing stock.
Last year, Radius launched its Environmental, Social, and Governance (ESG) policy, which sets out how it aims to promote positive environmental, sustainability and governance practices.
Green loans are a type of financing that are specifically designed to fund environmentally sustainable projects and attract a pricing discount from the bank.
The Green Term Loan will support Radius Housing to meet their ESG goals, through the inclusion of targets, such as increasing the EPC rating of 400 homes per year, and a year-on-year reduction in the overall energy used by the organisation.
The terms extend beyond environmental issues and will also see Radius take direct action to reduce the gender pay gap.
The funding package includes a £50m sustainability-linked Revolving Credit Facility (RCF), bringing the total funding package to £70m.
‘Perfect fit’
Speaking about the funding package, Alan Thomson, director of Finance at Radius Housing, said “Last year when we launched the Radius ESG Policy, we wanted to focus on improving the service we provide to tenants and customers.
“Central to this is how we can improve the sustainability of all our business practices.
“When it came to seeing how we would support that ambitious plan, it was clear that the Green Term Loan from Barclays was the perfect fit.
“The metrics they have set for us within this loan will drive us to be one of the most sustainable and efficient housing providers on these islands, and will ensure that how we work right across the business improves significantly.”
Joanna McArdle, Barclays director, added: “We have a longstanding relationship with Radius and are delighted to support them with this financing.
“This new £70m funding package will help the association deliver on its ambitious housing development programme as well as its new ESG strategy, and further underpins our commitment to the social housing sector.
“This funding is especially important at a time when those living in housing stress and constraints on the public purse are at an all-time high.”
Radius Housing manages more than 13,000 homes in 80 towns across Northern Ireland.
Image: (L-R) Alan Thompson, director of Finance and ICT, Radius Housing; and Joanna McArdle, Barclays director
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