Housing group gets £117m green homes loan
River Clyde Homes has secured a £117 million loan facility from the Royal Bank of Scotland to help address the rising demand for sustainable, energy efficient homes in the west of Scotland.
The funding package is made up of £20m of new funding along with a £97.5m refinancing restructure.
It will allow one of the largest registered social landlords in Scotland to raise living standards in the affordable housing market, with a focus on the sustainability and energy efficiency of the existing properties in support of Scotland’s journey to net zero.
John Wright, executive group services director at River Clyde Homes said: “Securing this funding is a major milestone for River Clyde Homes and the flexibility within this funding package will help us to deliver our future ambitions. These include enabling significant investment to modernise existing homes for customers.
“This investment will not only assist the organisation to lower its carbon footprint but will also help to reduce running costs for customers in the face of spiralling energy prices.”
David Horne, relationship manager at Royal Bank of Scotland, added: “This funding builds on a long-term relationship with River Clyde Homes, who we have supported since transfer in 2007. It will enable the continued support for the development and provision of much-needed good quality affordable housing in Inverclyde.
“The funding structure is designed to support the association as they adapt to short-term challenges in the market such as rising interest rates and inflation, whilst also providing them with long-term stability and confidence to deliver vital infrastructure projects that raise living standards and build closer communities.”
Formed in 2007, the organisation manages over 6,000 homes and provides factoring services to a further 2,200 customers in the Inverclyde area.