Triodos Bank reaches £250m lending milestone in social housing and targets further lending to the sector
15-12-2015 | In the last year Triodos Bank has arranged lending facilities totalling more than £25m to 7 different housing association customers across the UK. This takes the bank’s lending commitments to the sector to £250m, making it one of its fastest growing lending areas in the UK in recent years.
Triodos Bank is funded solely by savers and investors who want to see the funds they entrust with the bank lent to organisations delivering social, environmental or cultural impact; social housing fits well with this mission and continues to be a key lending sector for the bank.
The new facilities completed are to a range of new and existing housing association customers, and include the following: £5.7m to Glen Housing in Scotland; £1.4m to Wyedean Housing in the Forest of Dean; £7m to Solon Southwest Housing in Bristol; £4m to Cornwall Rural Housing; £0.4m to Wiltshire Rural Housing; £2m to Vectis on the Isle of Wight and £5m to Bournemouth Churches Housing Association.
Peter Borgers, Senior Relationship Manager at Triodos Bank, said: "When we first stepped up our lending to the sector in early 2009, we had commitments in place of less than £10m, so to reach the milestone of £250m this year is really pleasing. Social housing continues to be an important lending area for the bank in the UK; housing associations are key to tackling the UK’s housing crisis and we are keen to continue supporting the sector.
We generally look to provide first time facilities in the range of £1m to £10m, and we particularly like those associations that have a strong local and community focus; this might be in rural communities or in urban locations, or with roots in BME communities. We also like associations that provide specialist support in areas such as health and social care, or special needs provision.’’
CASE STUDY 1 – Solon Southwest Housing Association
Solon is a new customer for Triodos; based in Bristol, it was founded in 1974 and manages 1,200 homes in Bristol and South Gloucestershire. It continues to actively develop new homes, and we are pleased that our facility will help fund its growth ambitions.
Paul Ville, Chief Executive said: "The Triodos facility will fund the development of new homes which will continue to be an important strategic objective for Solon. We are proud to list Triodos Bank as one of our key lenders."
CASE STUDY 2 – Bournemouth Churches Housing Association (BCHA)
Founded in 1968, BCHA has over 2000 homes under management across southern England, and is a major provider of a diverse range of housing, support and learning services for socially excluded people. BCHA is a longstanding Triodos customer, and our new facility will help fund their continuing development programme and stock purchase opportunities.
Janice Hughes, Director of Finance and Corporate Resources said: "It is a key time for associations to continue supporting the local community with services and new homes. For BCHA this funding means that homes and communities will get the right investment and more homes will be built for local people."
About Triodos Bank
Triodos Bank only lends to organisations generating social, environmental or cultural benefit. Key sectors include social housing, charities & social enterprise, renewable energy, organic food and farming, and fair trade.
The bank also provides a range of personal savings accounts and full banking services for businesses and charities.
Its investment arm, Triodos Investment Management, separately offers a range of sustainable investment funds in areas such as microfinance, renewable energy and sustainable property. In the UK, the Triodos Corporate Finance Team advises on share and bond issues for businesses and charities, raising capital through private placements and public offers.
Transparency is a core value; the bank provides details of who its borrowing customers are, so that its savers and investors can see what their money is funding.