Notting Hill Genesis will receive the proceeds of its first sustainability bond, issued in line with its new sustainable finance framework, published in May.
The £250m green bond will be repaid over 15 years at a fixed interest rate of 2.08%, with the proceeds used mainly to fund two kinds of new home — those built for social housing, including general needs and shared ownership properties, or those built to a good standard of sustainability.
Homes in the second category would need to achieve an energy performance certificate (EPC) of at least B, where A is the most efficient and G the least.
“Issuing a green bond is an important step for Notting Hill Genesis,” said Chief Financial Officer Paul Phillips. “It’s not only a key part of our drive to become a more sustainable organisation, but also puts us in a good position financially. Issuing this bond improves our liquidity and establishes us further in the capital markets — a vital source of additional income which enables us to fulfil our core social purpose to build and maintain quality affordable homes, creating diverse and thriving communities.”
The bond is part of their work to develop a robust environmental, social and governance (ESG) framework within the organisation, which also includes reporting against the newly created Sustainability Reporting Standard for Social Housing. Making ESG performance information more accessible will demonstrate to their residents and other stakeholders the positive impact they are making against these goals.
In particular, it will demonstrate that by investing in the organisation, stakeholders are contributing to positive social and environmental impacts.
The new bond follows a trading update for the year ending 31st March 2021, which forecasts a surplus for the year well above budget.
