Centrus arranges £75m sustainability-linked term facility for VIVID

About VIVID

VIVID is a leading provider of affordable homes and manages 35,000 homes for 74,000 people across Hampshire, Surrey, Berkshire and West Sussex. In 2022-23 VIVID built 1,390 new homes, making them the sixth largest developer of new homes amongst housing associations in England.

Transaction Overview

In March 2024, Centrus arranged VIVID’s new £75m Sustainability Linked 10-year term facility from Nationwide. The loan has KPIs embedded within it which reinforce VIVID’s commitment to meeting housing need in a sustainable way.  These metrics include maintaining VIVID’s recently reconfirmed G1 regulatory rating and setting stretching goals for VIVID’s tenancy support team.

Centrus’ Solution

Centrus advised VIVID throughout the process, identifying Banking partners who both align with VIVID’s goals and ambitions in the sector, and who can provide the breadth, relationship and competitive terms VIVID require to secure their future growth. The medium dated term facility from Nationwide was an excellent fit for VIVID’s needs.

Access to this new funding is complementary to VIVID’s existing debt portfolio and provides medium-term security and balance, with attractive pricing secured even at a time of volatile rates. The funds will support VIVID’s mission to continue to create energy efficient homes and environments that have their customers at the heart.

“This loan is the perfect complement to our existing debt portfolio sitting between short-term RCF funding and longer-term bond debt. The facility is tightly priced and reinforces stretching ESG targets for us to deliver sustainable housing. We continue to be pleased with the support from the team at Centrus, in particular the insights and expertise they bring in identifying funding partners capable of providing the flexibility, pricing and breadth of products we need to advance our growth and de-carbonisation journey.”

Jonathan Roberts, Group Treasurer – VIVID

“We are pleased to have arranged this new ESG linked facility between VIVID and Nationwide which will fund new energy efficient homes and improvements to existing homes. The new funding benefits from a very competitive margin and takes advantage of the inversion between SONIA swap rates and gilt yields to deliver an attractive all-in cost for today’s market.”

Tom Archer, Assistant Director – Centrus

For more information, please contact Tom Archer.

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