VIVID have collaborated with HSBC UK to bring in new funding to realise our desire to build more affordable, energy efficient homes.
The facility is a five-year sustainability-linked RCF facility, embedding targets for delivering sustainable homes, whilst maintaining high standards of governance and continuing to support our customers and communities.
We want all our homes to provide sustainable living conditions for our customers which means having an energy efficient home – one that reduces unnecessary energy consumption and cost, as well as cuts carbon emissions.
VIVID were the fifth biggest builder in 2023-24 amongst Housing Associations, delivering 1,524 new homes, of which over 90% were for affordable tenures. Despite having an ambitious development programme we’ve retained our financial strength, being rated ‘A+’ with Fitch and having our ‘A’ rating recently reaffirmed by S&P. This follows on from our G1/V1 rating with Regulator of Social Housing being confirmed in February.
Jonathan Roberts, Group Treasurer commented: “Our development colleagues keep us in the market for new funding. We spent about £0.5bn on new homes last year! The deal is keenly priced, a testament to our financial strength. It’s great to bring a renowned bank into our funding pool. We’re excited to see how this relationship can grow in the coming years.”
Duncan Brown, Chief Finance Officer of VIVID said: “It’s been a pleasure working with HSBC UK on a deal that showcases VIVID’s ESG credentials. We’re excited to bring in a new lender into our funding pool, well known in the UK with a growing footprint across the Housing Association (HA) sector.”
David Whelan, Director of Real Estate Finance – Social Housing, at HSBC UK said: “HSBC UK are delighted to have been able to support VIVID with this new sustainability linked lending facility as the group press ahead with the development of new affordable housing whilst continuing to serve their existing customers and communities.
“We have built a strong relationship with the VIVID team, enabling a smooth and timely process to completion and we very much look forward to supporting VIVID into the future”
Louise Leaver, Partner from Bevan Brittan solicitors, said: “We were delighted to be able to work with such great teams at VIVID and HSBC UK to deliver this new sustainability linked funding which will see even more homes being built.”
Helen Hunter, Partner at Addleshaw Goddard, said: “Delighted to have supported HSBC UK with this new Sustainability Linked Loan Facility to VIVID, enabling them to meet key internal housing development targets which in turn support the current national housing strategy.”
