PA Housing secures £75m deal with Lloyds to deliver new, green homes

The funding will see PA Housing deliver new homes for social rent, affordable rental, and shared ownership across the East Midlands, London, and Surrey.The properties will go beyond current energy-efficiency regulations for rented homes, PA Housing says, with EPC ratings of at least B.The sustainable homes form part of PA Housing’s plan to meet net-zero ahead of the government’s 2050 target.The housing association is also increasing the number of EPC A and B properties in its existing stock as part of its investment programme.The provider currently has 24,000 homes across the Midlands, London, and the south-east.PA Housing turned to Lloyds Bank to complete a refinance to help fund construction and refurbishment activity.The deal also sees the transition of its finance to a sustainability-linked loan basis.The loan set a series of key performance indicators that PA Housing must meet.These cover retrofitting existing homes in the portfolio to improve energy efficiency, stronger representation from diverse ethnic backgrounds within the management tiers of its workforce, and helping residents into employment.• PA Housing can’t solely rely on its BAME heritage to deliver EDISimon Hatchman, Resources director at PA Housing, said: “Our commitment to delivering homes in the 10 years up to 2030 remains strong, building further momentum after investing £229m in our properties over the last few years.“Lloyds Bank’s continued support provides us with the financial flexibility to meet our development ambitions and to support thousands of residents by supplying homes that are fit for the future.”Lloyds Bank previously acted as PA Housing’s ESG structurer as part of its £400m sustainability bond issuance last year, which raised capital for upgrading the sustainability of its existing properties and to invest in the programme to deliver new social homes.Chris Yau, director of Origination and Sustainability, Housing, at Lloyds Bank, said: “PA Housing’s work to increase access to affordable and energy-efficient homes will provide better living standards for many people across the UK.“Its development programme complements its community engagement, aimed at getting people into work, supporting entrepreneurs, and helping residents facing hardship.“As the UK’s largest financial supporter of social housing, we’re proud to support PA Housing in delivering better, warmer homes for thousands of people across its operating regions.”