A major G15 housing association has signed a £75million loan that will see the cost of borrowing reduced if the organization makes its management team more ethnically diverse and improves the environmental performance of homes.
Anthony Marriott, director of corporate treasury and finance at Peabody, says the owner is “passionate” about his “journey to sustainability”
Peabody has signed a £75m loan which will reduce the cost of borrowing if the charity makes its management team more ethnically diverse and improves the environmental performance of #UKhousing homes
Peabody has entered into a five-year deal with the UK branch of Dutch bank ABN AMRO.
The housing association, which has managed more than 104,000 homes since its merger with Catalyst in April, will see interest on the loan reduced if it meets specific environmental, social and governance objectives, including improving performance environmental protection of existing housing and the construction of new social and affordable housing. houses for rent.
He is also to increase the ethnic diversity of Peabody’s management team, marking the first time the housing association has agreed an employee-centric goal with a lender.
The deal follows Peabody’s £350 million 12-year sustainability bond issue in February and is its fourth sustainability-related facility.
In September, the social owner signed an agreement with NatWest which renewed an existing tranche of funding and will see the cost of borrowing reduced if it meets targets focused on improving the average rating of the standard assessment procedure , which indicates the energy efficiency of a property. within its stock.
The agreement with Peabody is ABN AMRO’s first sustainability-related transaction in the UK social housing sector.
Anthony Marriott, director of corporate treasury and finance at Peabody, said, “The actions agreed to in this transaction align closely with our new strategic priorities following our merger with Catalyst.
“We are all about people first, placing equality, diversity and inclusion at the heart of our culture in the new organization.
“We will take positive steps to ensure that the ethnic diversity of our leadership team better reflects the communities we serve in the years to come, and this is reflected in the agreement.”
He added that the organization is “passionate” about its “sustainability journey”.
“Partnering with ABN AMRO will help us accelerate this as well as support the delivery of more affordable housing and place-making activity in London and the Home Counties,” he said.
Gerben Dragt, UK Country Director at ABN AMRO, said: “This new loan includes both sustainability metrics and social indicators which also align well with ABN AMRO’s continued strong commitment to sustainability. sustainability and positive social impact.
“The social housing sector in the UK faces challenges that cut right to the heart of society in terms of quality and safety of housing as well as reducing the carbon footprint.
“As in the Netherlands, ABN AMRO can help UK suppliers improve the sustainability of their existing portfolios and support their journey to net zero.”