MTVH agrees sustainability-linked loan

23 May 2024

Summary:The £100m sustainability linked loan with MUFG EMEA will support the delivery of affordable homes.

MTVH has agreed a £100m sustainability linked loan with MUFG EMEA to support the delivery of affordable homes in the UK.

The transaction further strengthens MTVH’s robust balance sheet and will help facilitate its target to deliver over 1000 homes annually across the UK. In the financial year to end March 2024, MTVH has forecast the delivery of at least 815 homes and will report on this target at its full year results later in the summer.

MTVH Chief Executive, Geeta Nanda OBE, said: “Since 2020 we have committed to aligning our borrowing with our sustainability goals through our sustainable finance framework and working with funding partners that share our commitment to sustainable growth. We are delighted to have strengthened our relationship with MUFG EMEA through this transaction and this facility will enable MTVH to continue with its central mission to provide much needed affordable housing in the UK.

“As reported at our half year trading update in December 2023 MTVH’s financial position is strong with £765m of available liquidity, and this transaction further supports that position. We will update the market on our full year housing delivery numbers, and goals for 2024/25 financial year, when we release our full year results later in the summer.”

Sanjay Narbheram, Head of Housing Finance, MUFG EMEA, said: “We are proud of the ongoing relationship built with MTVH. The refinancing and increase to the debt facilities will help MTVH in part to continue providing affordable homes for people and communities who need them most whilst meeting the rising demand for housing in the UK.

“MUFG EMEA has built up a great deal of experience in Sustainability Linked Loans, positioning us well when structuring this facility for MTVH.”

MTVH agreed the loan via its main borrowing entity, Metropolitan Housing Trust Ltd, and the loan supports MTVH in the delivery of new affordable homes and the delivery of its 2030 Sustainability Action Plan.

MUFG EMEA acted as the sole lender on the financing package.