Optivo secures £200m with social impact loan
Housing association Optivo has secured £200m from three providers with loan rates tied to social impact targets.
Optivo will use the funding to deliver 4,850 affordable homes over the next three years.
The funding includes a five-year £100m revolving credit facility with Barclays, a five-year £50m RCF with BNP Paribas, and a three-year £50m RCF with First Abu Dhabi Bank UK.
Housing association Optivo has secured £200m from three providers with loan rates tied to social impact targets.
Optivo will use the funding to deliver 4,850 affordable homes over the next three years.
The funding includes a five-year £100m revolving credit facility with Barclays, a five-year £50m RCF with BNP Paribas, and a three-year £50m RCF with First Abu Dhabi Bank UK.
The finance includes Optivo’s first facilities from BNP Paribas and First Abu Dhabi Bank UK. It is also the first loan from ADB UK for a social housing housing provider.
The two providers will provide lower rates on the £100m if Optivo is able to support more than 1,000 residents into work and training this year. They also have the opportunity to increase their individual facilities to £75m.
Sarah Smith, chief financial officer at Optivo, said: “This funding ensures financial stability during a crucial time for us. Demand for affordable homes is extremely high.”
Simon Gates, UK head of corporate coverage and transaction banking at BNP Paribas, said: “Ultimately, thanks to Optivo’s focus on employment, this sustainable linked loan is about getting people back into work, which is good for individuals, families, the economy and society.”
Tim Luckhurst, executive director, CIB, First Abu Dhabi Bank UK, said: “We are committed to being a responsible company by conducting our business in the way that balances people, profit and social conscience.”
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