M&G provides finance to Scottish housing association

M&G Investments is providing £45 mln (€54 mln) of long-term institutional financing to Edinburgh-based housing association Link Group.

The 31-year fixed rate financing enables Link Group to refinance some of its existing bank debt and meet its development ambitions over the coming years.

The Link group of social enterprises reaches around 10,000 people in 26 of Scotland’s 32 local authority areas, mainly in the Scottish central belt.

Prior to this deal, Scottish housing associations relied exclusively on banks and The Housing Finance Corporation to meet their funding requirements.

'Link continues to deliver over 200 new homes each year, despite the challenging economic climate,' commented Craig Sanderson, CEO of Link Group. 'This new funding not only allows us to supplement this substantial programme but also demonstrates a key institutional investor’s support which will enable Link to accommodate many more families in housing need.'