Allia awarded new bond contract by Scottish Government
Programme provides loans and grants to housing associations supporting the development of affordable housing across Scotland
The Scottish Government has today officially announced the award of a new contract to Allia with a commitment to invest a further £25m in Allia’s successful bond programme for Scotland, providing loans and grants to Scottish housing associations.
Since 2014 the Scottish Government has invested nearly £70m in Allia’s bonds to support the development of affordable housing across Scotland. To date, Allia’s bond programme has provided medium-term unsecured loans for nine housing associations around the country, including Kingdom Housing Association in Fife and Hjaltland Housing Association in Shetland.
Together these loans are expected to provide over 900 new affordable homes across Scotland. In addition, the interest that will be paid on these loans has enabled the creation of a grant fund of over £16m to support the delivery of homes for those on the lowest incomes.
The new contract now provides a further £25 million for investment in bonds in the current financial year.
Minister for Housing Kevin Stewart said:
“Innovative financing schemes such as charitable bonds play a major role in helping us to deliver our five-year commitment to provide at least 50,000 affordable homes during the lifetime of this Parliament.
“Our investment of a further £25m this year in Allia’s bond programme is expected to provide around £18m in unsecured loan finance for Scottish housing associations and up to £7m in grant funding for the development of new social housing.
Phil Caroe, Director of Social Finance, Allia said:
“Allia is delighted to secure another £25m to continue our lending programme in Scotland. Our unsecured loans are helping to fund the development of new affordable homes across the country, and we look forward to working with more housing associations and supporting them with this new funding.”
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Notes to Editors:
Photo: Housing Minister Kevin Stewart (right) with Kingdom Housing Association CEO Bill Banks at Kincardine housing development in Fife, where Kingdom is developing new affordable homes thanks to a development loan made through Allia’s bond programme.
Loans made through Allia’s bond programme for Scotland include:
£10 million, Castle Rock Edinvar Housing Association
£15 million, Eildon Housing Association
£10 million, Kingdom Housing Association
£5 million, Elderpark Housing Association
£5 million, Dumfries and Galloway Housing Partnership
£2 million, Orkney Housing Association
£2 million, Lochaber Housing Association
£1.6 million, Ayrshire Housing Association
£1.3 million, Hjaltland Housing Association
The new contract was awarded to Allia following a full public procurement process.
About Allia
Allia is an independent not for profit with a social mission, dedicated to helping impact initiatives to grow.
Allia Impact Finance provides innovative investment and social finance to help charities and organisations deliver greater impact. Its firsts include Retail Charity Bonds for larger charities and Charitable Bonds to raise grant funding for charitable projects. Since 1999 it encourages a wide range of individuals, corporates, voluntary and public sector organisations to use their investment money for social good.
For more information go to impactfinance.allia.org.uk
@AlliaIF
