Takeaways

• Bromford Flagship has secured £150m in sustainability-linked funding to strengthen liquidity and advance its investment plans.
• The loan facilities are tied to revised sustainability KPIs, which the group is developing with banking partners following its merger.
• The funding supports plans for affordable housing development, investment in existing homes, and maintaining a strong credit profile.

Bromford Flagship has secured £150m in sustainability-linked funding, strengthening its financial position as the newly merged housing association scales up investment in affordable homes and existing properties.

The 82,000-home landlord confirmed that it has finalized a seven-year £50m term loan and a five-year £100m revolving credit facility (RCF). The association said the combined facilities will “support Bromford Flagship’s cash and liquidity requirements over the medium term”.

Both funding lines are tied to sustainability KPIs, and the organization is now working to update its targets following the merger of Bromford and Flagship in February. According to the group, it is collaborating closely with its banking partners, including HSBC UK, to set KPIs that are “ambitious, achievable and aligned with its strategy”.

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Matthew Rose, director of treasury at Bromford Flagship, described the package as a “significant funding deal” and welcomed HSBC UK’s increased commitment to the organization. “Their increase in commitments to the group demonstrates the strength of the relationship and their continued support for Bromford Flagship’s strategic objectives, which include the development of new, affordable homes, investment in existing homes, and delivering high-quality services to customers,” he said.

Rose explained that the term loan and RCF strengthen liquidity for the newly enlarged group as it accelerates investment ambitions. “The term loan and RCF together provide additional cash and liquidity to our newly enlarged group as we scale up our investment ambitions, enabling us to maintain our strong, sector-leading credit profile,” he added. He also noted that integrating sustainability KPIs is an important driver of accountability and helps focus attention on the group’s long-term sustainability goals.

Stuart Taylor, head of social housing at HSBC UK, said Bromford Flagship has “a clear growth strategy”, pointing to its ongoing merger discussions with 40,000-home association LiveWest. He said the new funding will support communities where affordable housing remains scarce and will “help get more people into their own homes”.

The funding announcement follows a strong half-year trading update for the group. Bromford Flagship recently reported a £14m rise in turnover and confirmed it had completed all technical steps required to unlock £1.9bn of investment capacity following the merger.

In June, the housing association also issued its first £300m sustainable bond, which provides access to additional capacity and further supports its long-term financing strategy.

Also Read: CTP Secures €500M Sustainability-Linked Loan at 3.7%

With the new sustainability-linked facilities in place, Bromford Flagship is positioned to advance its development plans, reinforce its financial resilience, and continue expanding housing options for communities across its operating regions.

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Source: INSIDE HOUSING