MTVH secures new funding to drive sustainable development

22 July 2021

Summary: MTVH has secured £250m of new funding through a 15-year sustainable bond issue that will support it to build more new homes and help tackle the climate emergency.


At MTVH, we have a vision that everyone should have a home and the chance to live well.

Crucially, we are committed to building more new homes across a range of tenures to help tackle the twin challenges of the housing crisis and the climate emergency.

Over the next five years MTVH will build a further 6,000 new homes, spending £2.1bn over this period, whilst continuing to make significant investments in improvements to existing homes and in response to building safety requirements. 80% of these new homes will be for affordable rents or shared ownership.

The new funding we have been able to secure will help boost the organisation’s ability to deliver these new homes. Subject to issue on 28 July, the bond will raise £250m at a coupon rate of 1.875%, only the fourth housing association transaction this year to obtain a yield of under 2%.

At the heart of the fundraising is a commitment to sustainability in support of our efforts to work towards achieving net-zero carbon by 2050. This will see all new homes MTVH builds meet at least Energy Performance Certificate (EPC) B standard, or better, and existing homes meet a minimum of EPC C by 2030.

Geeta Nanda OBE, Chief Executive of MTVH, commented:

“I am delighted that we have been able to secure this new funding. It will support us to meet our ambitions that everyone should have a home and the chance to live well and to improve the sustainability of our new and existing homes to help tackle the climate emergency.

“Our commitment to sustainability in how we are building the new homes that the country so desperately needs was really welcomed by investors. We have a strong track record across the entire ESG (environmental, social, and governance) agenda, but with this new resource we can do even more.”

Earlier this month, MTVH became only the third housing association to achieve ‘Sustainable Housing Certification’ by Ritterwald. In December 2020, MTVH agreed a sustainability-linked £50m revolving credit facility with BNP Paribas, in what is believed to have been the first three-year Risk Free Rate (RFR) facility linked to sustainability in the sector.

 

 

 

This announcement does not constitute an offering of securities for sale in the United States or any other jurisdiction and is not for distribution in or into the United States or to US Persons.

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