Radius Housing secure £20m 'green loan' from Barclays
RADIUS has become the first social housing provider in the north to secure a ‘green term loan’ from Barclays.
The £20 million loan is funding part of a bigger £70m funding package from the bank, which will see Radius place more focus on sustainability across the organisation and its housing stock.
The social housing provider manages more than 13,000 homes in 80 towns across in Northern Ireland.
Green loans are a type of financing designed to fund environmentally sustainable projects, which in turn attract a pricing discount from banks.
Radius Housing said the new Barclays loan will help it meet its ESG (environmental, social, and governance) goals.
Its targets include increasing the EPC (energy performance certificate) rating of 400 homes per year, and a year-on-year reduction in the overall energy used by the housing organisation.
Radius said the funding package also includes a £50m sustainability linked revolving credit facility (RCF), again one of the first such facilities locally, bringing the total funding package to £70m.
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.”
Barclays director, Joanna McArdle, 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.”