Housing association Moat has secured a £100m sustainability linked loan facility from Lloyds Bank to retrofit its existing stock and boost its housebuilding activity across the South East over the next five years.
Moat will receive covenants on the funding should it meet three key performance indicators (KPIs) agreed with Lloyds Bank.
The first KPI relates to retrofitting the properties within its existing property portfolio to upgrade their sustainability performance. For the second KPI, Moat has committed to building new, affordable rental homes each year over the next five years to a minimum EPC B standard, and the final objective will see Moat increase the number of new apprentices it recruits each year.
Gloria Yang, executive director finance at Moat, said: “We are very pleased to have Lloyds Bank supporting us to invest more during an economically and politically challenging period. We have committed to achieving these three stretching targets to ensure that we invest in skills, sustainable existing, and new homes for years to come. Working with partners, we are proud to build more affordable homes to meet the strong demand in the South East.”
Lauren Bailey, relationship manager at Lloyds Bank, added: “Housing associations have a big task ahead of them as demand for more affordable housing across the UK increases, however they are also focused on the importance of improving the energy efficiency of their existing portfolios. We knew from the outset that Moat was committed to creating and delivering an ambitious plan and we are proud to support them to ensure its residents in the South East benefit from greener, affordable and fit-for-future homes.”
