Legal & General has provided £70m (€81.4m) of sustainability-linked long-term finance, via LGIM Real Assets, to housing association Saxon Weald to drive the development of new, energy-efficient homes in southern England.

Saxon Weald manages around 6,750 homes across Sussex and Hampshire, providing affordable rented and shared ownership homes for individuals and families, as well as properties for the over 55s.

The UK housing association plans to use LGIM Real Assets’ investment to develop new homes.

Highlighting Legal & General’s longstanding ESG agenda, the investment brings LGIM Real Assets’ investments with ESG-linked credentials in the corporate debt space to over £400m, spanning the social housing, higher education, and corporate sectors.

Steve Bolton, head of corporate debt, Europe, LGIM Real Assets, said: “There’s a stark, deep-rooted supply-demand imbalance when it comes to good-quality affordable housing in the UK. This, with the backdrop of rising energy bills and need to transition to a low-carbon economy, demands innovation within the social housing sector.”

Bolton added that this latest investment marks an example of ”inclusive capitalism at work, delivering a return to our pension holders whilst also benefiting our local communities”.

Michael Chinn, executive director, resources, Saxon Weald, said: “The new funding forms a core part of delivering our sustainability strategy and in continuing our objective of providing affordable homes.”

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