Scots government tops £54m in Allia charitable bonds

The charity Allia Impact Finance said it issued its ninth charitable bond for Scotland — taking the total invested by the Scottish government in Allia bonds to more than £54 million.

Allia said the latest bond will enable 82 affordable homes for social rent to be built in Govan.

Allia is working with the Scottish government to provide unsecured loans for housing associations.

“The loans made to date through the Scottish charitable bond programme are expected to provide 743 new affordable homes,” said Allia.

“Scottish government’s investment of £6.8 million in the latest bond issue has provided a loan to Elderpark Housing Association of £5 million, which will support the building of a mix of houses and flats in South Glasgow for social rent.

“The remaining £1.8 million will be given as a charitable donation to housing associations for the construction of social housing.

“These funds will be earned back in interest on the loan to Elderpark, enabling the government’s investment in the bonds to be repaid after 10 years.”

Phil Caroe, director of Impact Finance, Allia, said: “The Scottish government’s partnership with Allia is helping to accelerate the development of affordable housing across Scotland.

“We’re delighted to support Elderpark in providing more homes for social rent in south Glasgow, and we’re looking forward to making further investments into new affordable homes by the end of the financial year.”

Housing minister Kevin Stewart said: “Charitable bonds enable us to provide vital investment to social housing providers like Elderpark Housing Association.

“They are a crucial tool which has helped to develop 743 affordable homes across Scotland so far.

“We are committed to delivering at least 50,000 affordable homes over the lifetime of this parliament – backed by more than £3 billion.

“Access to quality housing is a vital part of our drive to secure economic growth, promote social justice, strengthen communities and tackle inequalities.

“These new homes in Govan mark another step on the road towards delivering that pledge.”