Rothesay Commits £150m to Boost UK Social Housing Retrofit with NWF and THFC

Rothesay Commits £150m to Boost UK Social Housing Retrofit with NWF and THFC

(IN BRIEF) Rothesay has committed £150m to a new unsecured debt facility for social housing retrofitting, launched by the National Wealth Fund (NWF) and The Housing Finance Corporation (THFC). The facility, with an initial £150m guarantee from the NWF, enables THFC to offer long-term, unsecured loans to registered providers (RPs) for retrofitting social housing. Rothesay’s full backing of the investment showcases how the NWF’s guarantee can unlock unsecured capital, typically reserved for secured lending. The partnership is the first instance where the NWF has offered such guarantees to bond market investors. The initiative is expected to grow to £250m in the next six months, supporting the reduction of energy consumption and emissions in the housing sector. NWF and THFC hope the scheme will contribute to the UK’s decarbonization goals. Rothesay’s Tom Pearce, NWF’s John Flint, and THFC’s Priya Nair all emphasized the potential for long-term capital investment to support social housing improvements.

(PRESS RELEASE) LONDON, 28-Feb-2025 — /EuropaWire/ — Rothesay has pledged £150m to a groundbreaking new unsecured debt facility aimed at supporting the retrofit of social housing across the UK. This initiative, launched by the National Wealth Fund (NWF) in collaboration with The Housing Finance Corporation (THFC), is designed to provide long-term unsecured loans to registered providers (RPs) for improving the energy efficiency of their housing stock.

The facility benefits from an initial £150m financial guarantee from the NWF, which enables THFC to offer long-term loans to RPs. Rothesay’s commitment ensures full backing for this initial investment, demonstrating the ability of the NWF’s guarantee to unlock unsecured capital for housing providers at terms usually reserved for secured lending. The partnership marks the first time the NWF has extended such guarantees to bond market investors for social housing retrofit projects.

This initiative is expected to catalyze further growth, with the NWF and THFC targeting an expansion of the facility to £250m over the next six months, depending on demand. By giving bond market investors access to this funding, the scheme aims to expedite the retrofitting of social housing, contributing to significant reductions in energy consumption and emissions within the sector.

Rothesay’s Chief Executive, Tom Pearce, commented on the partnership: “Rothesay is proud to support this innovative project as part of our long-term commitment to the UK. The funding provided will allow housing associations nationwide to improve their environmental footprint, and partnerships like this demonstrate the potential to unlock substantial institutional capital for social housing.” Pearce also expressed Rothesay’s ongoing commitment to working with the NWF and THFC to further expand the initiative.

Chancellor of the Exchequer, Rachel Reeves, remarked, “The £150m of private investment unlocked by this partnership will help create jobs and contribute to the retrofit of energy-efficient homes. This builds on the 6,500 jobs already expected in the sector and aligns with the government’s broader plan for sustainable growth.”

John Flint, CEO of NWF, emphasized the importance of collaboration between the private and public sectors, saying, “The launch of THFC’s unsecured facility will accelerate the retrofit process, driving increased ambition and uptake in the sector. Rothesay’s participation is a key part of mobilizing institutional capital into social housing, fostering confidence in the industry.”

Priya Nair, CEO of THFC, echoed the sentiments, stating, “THFC is committed to supporting the decarbonization of social housing and, in partnership with the NWF, we’re providing a vital funding solution to improve homes and create sustainable communities, helping to achieve the UK’s net-zero goals.”

Notes to Editors

For more information on the NWF, please contact Catherine Leonard and Archie Hart at: press@nationalwealthfund.org.uk

For more information about the Retrofit Funding scheme, please contact:info@thfcorp.com

For more information about Rothesay, please contact Alex Child-Villiers +44 (0)7795 425580 or rothesay@templebaradvisory.com

About NWF
The National Wealth Fund (NWF) was transformed from the UK Infrastructure Bank (UKIB) on 14th October 2024. The NWF will have an expanded remit beyond infrastructure in support of the Government’s industrial strategy. With additional financial capacity and an enhanced risk budget, the NWF is capitalised with £27.8bn to mobilise private capital around the Government’s strategic priorities, enabling the market to invest with confidence in clean energy and growth industries. The NWF is wholly owned by HM Treasury but is operationally independent from government. The development of this guarantee product with THFC forms part of ongoing efforts to improve financing to the social housing sector, a fundamental pillar of the Government’s warm homes plan.

About THFC
THFC has been the UK’s leading affordable housing aggregator for more than three decades, providing innovative funding solutions for over 150 housing associations across all four nations of the UK. THFC has amassed a near £8bn loan book to date and continues to expand its range of financial products to serve the needs of the social housing sector. THFC has made significant contributions toward solving the UK’s affordable housing crisis, having funded 32,000+ homes under Affordable Housing Finance Plc, which oversaw the government’s initial Affordable Housing Guarantee Scheme. The aggregator launched bLEND in 2018 and unveiled THFC Sustainable Finance (TSF), a sustainable finance vehicle, in 2023.

About Rothesay
Rothesay is the UK’s largest pensions insurance specialist, purpose-built to protect pension schemes and their members’ pensions. With over £68 billion of assets under management, we secure the pensions of more than one million people and pay out, on average, approximately £200 million in pension payments each month.

Rothesay is dedicated to providing excellence in customer service alongside prudent underwriting, a conservative investment strategy and the careful management of risk. We are trusted by the pension schemes of some of the UK’s best known companies to provide pension solutions, including British Airways, Cadbury’s, the Civil Aviation Authority, the Co-operative Group, National Grid, Morrisons and Telent.

Rothesay refers to Rothesay Limited and its subsidiaries and is the trading name for Rothesay Life Plc, an insurance company authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Further information is available at www.rothesay.com

SOURCE: Rothesay Life Plc