North West landlord raises £100m under government-backed scheme

Venn, which manages the AHGS, said the loan was funded by the issuance of further bonds under the scheme’s existing 2036 bond series.

The sale of the bonds, which are guaranteed by the UK government, achieved “attractive pricing” of 42 basis points over gilts, Venn said. This resulted in an all-in yield of 5.238 per cent.

The £100m loan is Torus’ second loan under the AHGS. The housing association secured £200m under the scheme in 2023. That funding was made up of a first tranche of £130m and then a £70m loan later in the year.

Alex Todd, director at Venn, said: “It’s great to see Torus come back for a second loan under the scheme, which will support with the next phase of their delivery pipeline after their first £200m AHGS loan in 2023.

“This transaction provides a shorter maturity for Torus on the funding curve and in addition, half of the loan will be used to invest in improving their existing homes.”

Ann Monk, group finance director at Torus, said: “We’re delighted to secure a second loan under the Affordable Homes Guarantee Scheme, which will enable us to accelerate the delivery of much-needed affordable homes across our communities.

“This funding not only supports the development of new homes but also allows us to invest significantly in improving the quality and sustainability of our existing housing stock.

“The flexibility built into this facility reflects our strategic approach to managing liquidity while continuing to deliver on our long-term vision to support the development of economically vibrant communities and independent lives.”

This latest funding deal under the scheme comes after two landlords raised a combined £105m through the AHGS earlier this month, in separate deals. Wandle Housing Association secured a £55m loan and Trent & Dove a £50m loan.

At the end of September, Hightown Housing Association raised £100m through two separate loans under the scheme. Other deals this year include Peabody’s £250m in August and Vivid’s £200m in May.

Hear from Steve Coffey, group chief executive of Torus, at the Social Housing Leaders Conference on 26 November in London. Mr Coffey will be speaking on a session entitled ‘Social housing: what’s our purpose?’ alongside fellow chief executives including Mel Barrett of MTVH, Paul Dolan of Riverside and Charlie Norman of MSV Housing. For more information and booking, click here.