SNG makes £75m tap of sustainability bond

Proceeds of the £75m tap will be allocated under eligible sustainable categories under the sustainable finance framework, such as the development of new affordable homes and the retrofit of existing ones. The exact allocation was not determined in advance of funding.

SNG has a target to deliver 25,000 homes across the South of England over the next decade.

According to its financial results, the G15 landlord invested £642m in development during 2024-25, up from £488m in the previous year, and completed 1,590 homes, a drop from 2,015 in 2023-24.

Anup Dholakia, director of treasury at SNG, said: “This additional funding under our EMTN programme reinforces our commitment to helping tackle the housing crisis by delivering good affordable homes, while also contributing to our ambitious sustainability targets.”

Barclays acted as sole bookrunner. The transaction was placed into multiple UK investors.

Penningtons Manches Cooper conducted the legals for SNG while Pinsent Masons acted for the funders.

Naomi Roper, partner at Penningtons Manches Cooper, said: “This transaction is the latest example of how innovative funding structures can help providers deliver sustainable, affordable housing through innovative, tailored approaches to finance.”

In August, SNG agreed a £100m loan with Lloyds under the National Wealth Fund to fund retrofit works. In June, the housing association secured a £250m sustainability-linked loan with NatWest to support its development ambitions.