Housing association VIVID has collaborated with HSBC UK to bring in new funding to realise plans to build more affordable, energy efficient homes.

VIVID says the five-year sustainability-linked RCF facility has embedded targets for delivering sustainable homes, whilst maintaining high standards of governance and continuing to support customers and communities.

The social landlord was the fifth biggest builder in 2023-24 amongst housing associations, delivering 1,524 new homes, of which over 90% were for affordable tenures.

VIVID has retained its financial strength, being rated ‘A+’ with Fitch and having its ‘A’ rating recently reaffirmed by S&P. This follows its G1/V1 rating being confirmed by the Regulator of Social Housing in February.

Jonathan Roberts, VIVID’s Group Treasurer, said: “Our development colleagues keep us in the market for new funding. We spent about £0.5bn on new homes last year! The deal is keenly priced, a testament to our financial strength. It’s great to bring a renowned bank into our funding pool. We’re excited to see how this relationship can grow in the coming years.”

Duncan Brown, VIVID’s chief finance officer, said: “It’s been a pleasure working with HSBC UK on a deal that showcases VIVID’s ESG credentials. We’re excited to bring in a new lender into our funding pool, well known in the UK with a growing footprint across the Housing Association (HA) sector.”

David Whelan, Director of Real Estate Finance – Social Housing, at HSBC UK said: “HSBC UK are delighted to have been able to support VIVID with this new sustainability linked lending facility as the group press ahead with the development of new affordable housing whilst continuing to serve their existing customers and communities.

“We have built a strong relationship with the VIVID team, enabling a smooth and timely process to completion and we very much look forward to supporting VIVID into the future.”