Affordable housing aggregator The Housing Finance Corporation (THFC) has unveiled a £2bn finance vehicle to help housing associations deliver on their sustainability objectives across new and existing homes.
THFC Sustainable Finance (TSF), which has been assigned ‘A’ long-term and ‘A-1’ short-term ratings with stable outlook by Standard & Poor’s, will offer the same competitive terms as THFC’s £1.47bn subsidiary bLEND, providing housing associations with access to the capital markets in smaller amounts and also offering flexibility through deferred drawdowns.
The new vehicle will focus on issuing “sustainable use of proceeds and sustainability bonds, which can be used to invest in both new and existing homes including retrofitting homes”.
Fenella Edge, group treasurer at THFC, said: “Launching a new programme with an A stable rating alongside our bLEND programme, rated A2 by Moody’s, gives us two well-rated vehicles both of which will issue under THFC’s strong sustainability framework, and which we believe will be attractive to our investors and clients and sets us apart.”
Arun Poobalasingam, head of relationship management and business development at THFC, added: “As the sector continues to look at ways to solve the UK’s affordable housing shortage both through new supply but just as importantly investing in their existing homes, we will continue to come up with funding solutions that can help them do this.”
