We've secured £200m to deliver more affordable homes

 

08 August 2019​

This financial boost is a huge vote of confidence in us as we look to start 4,850 new homes over the next three years. 

The funding includes a five year £100m revolving credit facility (RCF) with Barclays, a five year £50m RCF with BNP Paribas and a three year £50m RCF with First Abu Dhabi Bank UK.

It’s the first time we've done business with BNP Paribas and First Abu Dhabi Bank UK, and the first time the latter has ever entered into a loan with a social housing provider. 

Sarah Smith, Chief Financial Officer at Optivo, said: “This funding ensures financial stability during a crucial time for us. Demand for affordable homes is extremely high and, as a housing association, we have responded by planning to start 4,850 homes over the next three years. We are delighted to have significant financial support from Barclays, BNP Paribas and First Abu Dhabi Bank UK. It not only shows confidence in Optivo but the UK social housing sector as a whole.”

Both BNP Paribas and First Abu Dhabi Bank UK have given us the chance to increase their facilities to £75m. They’ve also tied their interest rates to our social impact targets. This means we'll benefit from a lower rate if we get over 1,000 residents into work and training this year.  

Simon Gates, UK Head of Corporate Coverage and Transaction Banking at BNP Paribas, said: “Ultimately, thanks to Optivo’s focus on employment, this sustainable linked loan is about getting people back into work, which is good for individuals, families, the economy and society.  It’s a business model that BNP Paribas supports, with this deal being the second SLL we’ve structured in the UK Housing Association sector in the last 12 months.”  

Tim Luckhurst, Executive Director, CIB, First Abu Dhabi Bank UK, said: “FAB UK is delighted to partner with Optivo to support their efforts to deliver new homes over the next three years, as well as assisting their residents into work and training. We are committed to being a responsible company by conducting our business in the way that balances people, profit and social conscience.”

Andy Taylor, Relationship Director at Barclays Corporate Banking, said: “By providing this new £100m Revolving Credit Facility, we’re helping Optivo deliver on their planned development programme of 4,850 new homes over the next 3 years. Building more quality affordable housing is one of the most significant challenges facing the UK and at Barclays Social Housing team, we’re committed to doing all we can to support organisations like Optivo and allow more families to get the homes they deserve.”

This new funding is a welcome addition to our £44.9m partnership with Homes England to build 1,000 homes outside London by March 2022. 

We've also secured £88.4m from the Greater London Authority in July 2017 to build 2,600 homes in London. A further £57.2m was agreed in August 2018 to deliver 1,000 more affordable homes in the capital.