Stonewater to receive £200m funding from Lloyds Bank

By Tom Kilkelly

15 August 2023

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Reading's Stonewater, a housing association, has secured £200 million in funding from Lloyds Bank to support its on-going development programme.

The company has refinanced its current facility, expanding it by £75 million (from £125 million). Stonewater has also transitioned the facility to a sustainability-linked loan which will see it measured against three KPIs (key performance indicators) to receive covenants on its funding.

The first KPI relates to Stonewater retrofitting its existing stock to ensure it is going above the current minimum regulations and all of its properties are at least EPC-C earlier than 2030.

Secondly, the association will look to increase the energy efficiency standard of its new homes to beyond minimum planning regulations, with a high percentage of homes reaching SAP 86 and above.

Ray Tierney, Relationship Director & Regional Head of Housing at Lloyds Bank, said: “Tackling climate change and meeting demand for quality housing are issues that will define the next decade. Stonewater is already taking the lead in meeting its responsibilities and we look forward to supporting them as they continue to be ambitious in being sustainable and helping communities across the UK.”

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Stonewater is currently rated as “Gold” via the independent SHIFT sustainability framework – an amalgamation of 15 separate ESG KPIs into one overarching score.

The firm currently owns and manages around 36,000 homes for more than 78,000 customers.

Anne Costain, Chief Financial Officer at Stonewater, said: “This is an important agreement for Stonewater as it continues the progress we are making towards more affordable, lower-carbon homes for our customers. It is also a clear demonstration of the financial strength of our organisation, which allows us to focus on existing customers, while delivering much-needed affordable homes for others in society.”

By Tom Kilkelly

Tom Kilkelly started working as a freelance journalist for The Business Magazine following his graduation from UCL in 2022.

During his studies Tom became very interested in the works of Irish authors including Samuel Beckett and Flann O'Brien (Brian O'Nolan).

His current role as a freelance business reporter is his first exposure to the world of business journalism. Working at TBM has given Tom the chance to really get to grips with the goings-on in the business hive that is the South East.