International law firm Trowers & Hamlins has advised The Housing Finance Corporation (THFC) on the launch of a new medium term note programme which the UK's National Wealth Fund (NWF) has agreed to guarantee, to raise funds to provide long-term, unsecured loans to help registered providers retrofit their social housing stock in the UK.
The programme is expected to launch with an initial £150m investment from Rothesay, the largest pension insurance specialist in the UK. THFC and the NWF hope to grow the scheme to £250m over the next 6 months depending on take-up.
THFC will make long-term, unsecured loans to social housing providers across the country to help fund the installation of low-carbon heating and lighting, insulation and ventilation, as well as to support resilience measures and biodiversity.
The £150m guarantee marks the first time that NWF has provided guarantees for retrofit to bond market investors.
Currently, 34% of socially rented homes in England have an Energy Performance Certificate (EPC) rating below C, with social housing representing almost 15% of all homes in fuel poverty in the UK. It is estimated by the National Housing Federation that close to £36bn of investment will be needed to fully decarbonise housing association properties.
Trowers advised The Housing Finance Corporation on its Secured Note Programme, the NWF guarantees and the associated downstairs loan documentation.
Partner Ian Dobinson led on the note programme and Imogen Fisher led on the downstairs loan documentation. The wider team included Senior Associate Jon Grosvenor and Managing Associate Jasna Djurisic.
Ian commented:
"We are proud to have advised The Housing Finance Corporation on the launch of this landmark £150m unsecured debt facility, which will provide crucial funding to support the decarbonisation of social housing. This initiative, backed by the National Wealth Fund, represents a significant step towards improving energy efficiency and enhancing the long-term sustainability of social housing in the UK. At Trowers & Hamlins, we remain committed to supporting innovative financing solutions that drive positive environmental and social impact."
