Bromford secures £75m funding with HSBC UK with sector-first repairs KPI

Bromford has announced a new £75m revolving credit facility with HSBC UK, with the first KPI in the sector linked to reducing repairs.

Bromford has finalised the dual target sustainability linked loan (SLL) with HSBC UK to further fund its ongoing investment in existing and new homes. The repairs-focused KPI covers all categories of repair, including cases of condensation, damp and mould and challenges Bromford to reduce the number of live repairs from its customers, from a 12-month average of 8,000 in March 2025, down to 7,000 by March 2028.

Paul Coates, executive director of customer transformation at Bromford said: “We are acutely aware that there has been increased scrutiny over the performance of housing associations in responding to customers’ repairs requests over the past 12 months, with an increased focus on damp and mould, where the negative impacts on health have resulted in legislation via Awaab’s Law. We’ve already been focussed on reducing the number of repairs we have open, including investing around £4.5m this year investigating and resolving reports of condensation, damp and mould in our homes and finding long-term solutions to these issues.

“But we’re determined to do more and want to move to a more proactive approach to maintaining our homes that will help us to further reduce the number of active repairs we have from customers. It’s a key part of our corporate strategy and so it makes perfect sense to align this latest funding deal with this goal.”

Bromford’s director of treasury Imran Mubeen added: “We are delighted to have entered into this new partnership with HSBC UK as they continue to support the social housing sector. This deal forms the foundation of a long-term relationship with HSBC UK as we press ahead with our plans to raise over £1bn of new funding by 2031. This £75m facility has been delivered through our sustainable finance framework and will allow us to progress our ambitious development plan, invest in our existing homes, and pursue our decarbonisation agenda.

“We are particularly pleased that the facility is sustainability-linked, bringing our portfolio to a total of eight sustainability KPIs across six Sustainability Linked Loans, all of which align to key objectives in our 2023 – 2027 corporate strategy. At Bromford, we continue to see SLLs as a meaningful tool in giving prominence to and holding us to account on our sustainability journey. But we continue to push back against the growing volume of requirements from the Loans Market Authority. It is of course important that we have rigorous and independent review of our sustainability performance but this must be balanced with a recognition of the social purpose and green agenda inherent to our purpose as a social housing landlord, and we must ensure we don’t get lost in a cycle of reporting and process and lose focus on driving outcomes.

“It is also important that ESG disclosure, reporting and accountability is a two-way process and that we ask the same questions of the bank in regards to their ESG journey as they rightly demand of us. We are pleased that HSBC have helped to deliver a balanced approach to this SLL, and that they have shared their own sustainability performance – including areas for improvement on their gender pay gap and carbon emissions – so openly. We hope that this partnership will enable us both to raise our standards in ESG delivery over the coming years.”

Legal advice for the deal was provided by Devonshires Solicitors LLP, and Addleshaw Goddard LLP.

Over the past 12 months Bromford has now secured more than £450m in new funding, all through its sustainable finance framework, to help finance its programme of housebuilding across the West Midlands and West of England. Last month the housing association retained its A2 stable credit rating with Moody’s and is rated A+ stable with S&P.