Our new funding agreement
We're working with NatWest to fund new homes and meet great social and environmental targets.
We're planning to deliver 2,100 new homes across the East Midlands over the next five years. The five year arrangement contains two Environmental, Social and Governance (ESG) targets. This will enable us to pay lower interest rates if we hit either one or both of these targets.
The targets, which aim to increase BAME representation in our management teams, and improve the energy performance of existing homes by 2025 are key priorities for us. This type of arrangement is the first of its kind for us.
Naomi Dobraszczyc, Director of Finance and Resources, said: “We want to increase BAME representation in our management team to 13% by 2025, from our current position of 10%. We have taken a number of steps to achieve this, such as our adoption of the Race at Work Charter, and new approaches to recruitment such as having BAME Board representation on all recruitment panels for senior management roles.
“We hope that in setting this goal we will drive positive change at senior levels of our organisation, and demonstrate that NCHA means business on diversity and inclusion. We believe that this type of target is a first for the sector, and we hope that others will follow.”
The second target is tied to improving the energy performance of our existing homes by raising these to an EPC C standard.
Chief Executive Paul Moat added: “We want to make sure that all of our tenants benefit from a warm, energy-efficient home, and so we are planning to upgrade 770 homes over a four year period. As well being an important step in tackling fuel poverty, this is also linked to our wider environmental strategies and targets for carbon reduction over the coming years.”
Hedley Hadfield, Director, Housing Finance at NatWest, commented: “NatWest is delighted to have agreed this new funding with NCHA. We look forward to developing our relationship and working in partnership with the team at NCHA to support their development aspirations. The inclusion of two ESG linkages in this facility, which is a first for NatWest lending to the social housing sector, is a great demonstration of our purpose in action.”
In 2020, NatWest announced that it will be investing £3bn in social housing by the end of 2022. This will be used to support the construction of 20,000 homes.
Hedley commented further: “As a purpose-led organisation, we want our customers and wider communities to succeed, and increasing social housing so that more people can have an affordable and safe place to call home is a key part of that. 2020 was a very busy and successful year for our housing business and it is great to be able to pick up where we left off as we start 2021 and support NCHA.”