Catalyst Housing association has secured its first loan linked to social performance.
The new £50m revolving credit facility with Sumitomo Mitsui Banking Corporation (SMBC) incorporates a margin reduction if Catalyst meet set targets to assist customers with maximising income. Outcomes will be reported in Catalyst’s annual accounts.
The loan is one of SMBC’s first social performance linked loans in the housing sector and aims to further UN Sustainable Development Goals 1 (No poverty) and 8 (Decent Work and Economic Growth).
The housing association has a dedicated community investment team called Catalyst Communities that work across London and the wider south east, with a special focus on Catalyst neighbourhoods. Catalyst Communities runs and funds a wide range of projects, including youth mentoring schemes and apprenticeship and employment programmes.
Michaela Booth, Director of Corporate Finance, said: ” At Catalyst our investment in our communities is a key part of staying true to our social purpose. Our Catalyst Communities team help our customers with income maximisation through finding decent employment aiming to mitigate the risk of poverty. This new funding from SMBC fits perfectly with our commitment to investing in our communities.”