Fife-based Kingdom Housing Association has secured a further £5.03 million in what is now its third Allia Social Impact Finance Scottish Government charitable bond.
This makes a total of £15.25 million that has been borrowed over the last three years by Kingdom under the bonds which has supported the building of 293 homes across Fife.
Kingdom has welcomed the continuing provision of this unsecured and competitively priced borrowing that is supported by the Scottish Government and is pleased to have signed up to not only this tranche of funding but a master facility agreement for up to £30 million of future borrowing if required.
The announcement came as part of a ministerial visit to Kingdom’s completed development and regeneration site at Kincardine where he announced the 2018-19 Scottish Government Charitable bond programme would increase from £25 to £40 million.
Nick Pollard, director of corporate support services at Kingdom, said: “The bonds have at their heart a simple and efficient loan documentation and completion process and this is immensely attractive to us. The borrowing is for a 10 year term with bullet repayment and interest rolled up which maximises the effectiveness of operating cash flow an fits within our overall debt portfolio. The fact that it is unsecured borrowing also enables Kingdom to maximise the effectiveness of its security pool of assets for other borrowing opportunities. The added benefit is the unique aspect that the bond creates significant donations from the bond interest to support the housing grant funds for delivery of affordable homes which meets Kingdom’s corporate social responsibility objectives.”