The UK’s National Wealth Fund plans to guarantee £250mn of loans to improve the energy efficiency of hundreds of thousands of homes, in a move it hopes will attract bond investors to help the government meet its climate goals.
The NWF said it had guaranteed an initial £150mn of loans provided by The Housing Finance Corporation which lends to housing associations, and financed by insurance company Rothesay. A further £100mn is planned within the next six months.
The move would bring the total amount the state-backed fund has underwritten towards retrofitting social housing to £1bn, following its assurance of £750mn of loans from Lloyds and Barclays late last year.