Launch: 2023

THFC Sustainable Finance Plc

Overview

The Housing Finance Corporation, in partnership with the National Wealth Fund, is offering £250m in guaranteed long-term loans to UK social housing providers for retrofitting. The funding supports improvements such as low-carbon heating, insulation, renewable energy and biodiversity—boosting sustainability and resilience across the sector.

Key Information

The Housing Finance Corporation is in partnership with The National Wealth Fund (NWF) to provide guaranteed long-term, unsecured loans to UK registered providers of social housing for the purpose of retrofitting their social housing stock. The NWF guarantee of£250m represents the first occasion that NWF has provided a guarantee for this purpose to bond market investors. Retrofit loans provided by The Housing Finance Corporation can be used by social housing providers across the country for the installation of low carbon heating, insulation, low carbon lighting, renewable energy, ventilation and heating controls, as well as work on resilience measures and biodiversity.

What is the scheme?

New £250m guarantee program designed to provide low-cost unsecured funding for the retrofitting of social housing. The program includes two types of loans with a 5–7 year unsecured loan guaranteed by NWF and a secured loan matching or exceeding the guaranteed tranche tenor, up to a maximum of 40 years.

Housing associations can become eligible by arranging two loans:

1.          Unsecured retrofit facility guaranteed by NWF

2.         Secured funding for general corporate purposes

Why is the scheme important?

Supports the sector with low-cost, unsecured funding to help Has fulfil their retrofit obligations.

The capital will be leveraged by HAs to reduce carbon emissions, lower tenant expenses, and improve the quality of the United Kingdom’s social housing stock.

What are the eligibility measures?

  • Low carbon heating
  • Double and Trible glazing
  • Insultation – building fabric
  • Small-scale renewable energy
  • Building light and heating controls
  • Low energy lighting
  • Ventilation / cooling measures
  • Resilience measures
  • Water efficiency measures
  • Energy efficiency equipment & EV charging
  • Biodiversity / habitat creation

Summary Terms

Summary Terms*Unsecured Loan Guaranteed by NWFSecured Loan
PurposeFunding of retrofit spend incurred up to 5 years from drawdownGeneral corporate purposes, including refinance
Loan SplitMax 60% of the total loan amountMin 40% of the total loan amount
Loan Amounts
  • Min: £3M
  • Max: £75M
  • Min: £3M
  • Max: No restriction, as long as the proportion of TSF and TSF2 or TSF 3 loans do not exceed a 10:90 split
Minimum Security Requirements
  • Second-ranking security over the assets
    charged in favour of TSF2 for the secured loan
  • No unencumbered asset test
  • Minimum 105% EUV-SH and/or
  • Minimum 115% MV-STT
  • No net income cover test on security
  • Liquidity Reserve Fund - 12 months interest
Repayment

Bullet

Maturity5-7 yearsMatching or exceeding the guaranteed tranche tenor, up to a maximum of 40 years
Pricing

Transparent pricing, please speak to your Relationship Manager

Reporting Requirements
  1. Annual sustainability report in a format based on the criteria outlined under the Sustainability Reporting Standard (SRS) for Social Housing.
  2. Retrofit Works Reports (Loan 1 only)
Lending Entity
  • THFC Sustainable Finance (TSF)
  • THFC Sustainable Finance 2 (TSF 2)
  • THFC Sustainable Finance 3 (TSF 3)

*Subject to programme update

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Contact Details

Location

3rd Floor, 17 St. Swithin’s Lane,
London, United Kingdom, EC4N 8AL

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