10 December 2020, London – BNP Paribas has agreed a £50mn sustainability-linked revolving credit facility with Metropolitan Thames Valley (MTVH), one of the UK’s largest housing associations. The three-year facility is believed to be the first Risk Free Rate (RFR) sustainability-linked loan in the sector.
The facility’s interest margin is tied to MTVH achieving environmental targets of reducing greenhouse gas (GHG) emissions linked to energy consumption from both its offices and transport, as well as its residential portfolio. The measured GHG emission reduction values – corresponding to the preceding financial year – are reported.
MTVH has transitioned the facility away from LIBOR (which is due to cease at the end of 2021) with multiple interest periods linked to the Sterling Overnight Index Average (“SONIA”) for GBP.
“We’re committed to supporting the decarbonisation of social housing in the UK, and this innovative loan with BNP Paribas is one of the ways in which we’re playing our part. By meeting sustainability targets to help fund our business we can cut the cost of our debt, further build our financial strength and free up more funds to achieve our ambition of providing more affordable homes and supporting our residents and customers to live well,” says Donald McKenzie, Director of Corporate Finance at MTVH.
MTVH has implemented measures including installing energy efficient technologies, aligning supplier environmental targets to a sustainable procurement policy and operational climate footprint monitoring. MTVH has a progressive carbon emissions reduction strategy and discloses both Scope 1 (direct) and Scope 2 (indirect) carbon emissions.
“MTVH has demonstrated that funding structures, commercial strategy and the demands of the climate crisis need not be at odds. As an active member of the Coalition for the Energy Efficiency of Buildings, BNP Paribas knows that decarbonising the built environment is essential for achieving net zero in the UK. In MTVH we found a partner whose understanding matches our own,” says Anne Marie Verstraeten, BNP Paribas UK Country Head.
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About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 71 countries, with approximately 199,000 employees, of which more than 151,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
Metropolitan Thames Valley (MTVH) is one of the UK’s largest housing associations, providing affordable homes, and care and support services. It owns, manages or administers around 57,000 homes across London, the South East, East Midlands and East of England.
MTVH was formed in October 2018 when Metropolitan and Thames Valley Housing came together as a new group. It is a member of the National Housing Federation and the g15, which represents London’s largest housing associations and houses one in ten Londoners. MTVH believes everyone should have a home and the opportunity to live well.
For more information contact:
Lee-Anne Smith +44 07702 532951 Lee-Anne.Smith@mtvh.co.uk
Hugh McCafferty +44 7738 714102 Hugh.McCafferty@mtvh.co.uk
Sarisher Mann (UK) +44 7469 403 542 Sarisher.Mann@uk.bnpparibas.com