NatWest Group is issuing a €1bn affordable housing bond, the first of any kind issued by a UK bank.
The proceeds of the bond will be allocated to non-profit housing associations which provide access to affordable housing. The selected associations provide affordable rent, supported housing and shared property schemes. They own around 150,000 units of housings in total, the bank said in a statement today.
The bonds are part of NatWest Group’s pledge, made last year, to provide £3bn of funding to the UK’s affordable housing sector by the end of 2022.
The bond is the third issued under NatWest’s Green, Social or Sustainability framework, the first of which was issued in 2019 to small and medium-sized businesses in areas of high unemployment.
In May last year NatWest issued its first ‘green’ bond, the proceeds of which were allocated to 13 Renewable Energy Projects across the UK.
Alin Rose, chief executive of NatWest Group, said: “The launch of our inaugural affordable housing social bond reinforces our pledge to provide £3bn of funding to the affordable housing sector by the end of 2022. As the third bond issued from our Green, Social and Sustainability Bond Framework, it helps to underline our commitment to the green and social sectors.”