Scottish Widows is to provide investment of £40 million to Port of Leith Housing Association to boost plans to create more than 650 social and mid-market rented homes by 2025.

Gavin Reid, associate director at Scottish Widows, said: “We are thrilled to have structured a funding solution that supports Port of Leith Housing Association’s strategy to deliver more affordable homes, while providing high-quality cashflows to match our pension liabilities.

“We look forward to seeing these plans come to fruition in the coming years.

“We have now invested in excess of £3.6bn in this sector as part of our ongoing commitment to the UK’s social housing sector.”

The funding for Port of Leith Housing Association will be drawn in stages at a 30-year fixed rate of 2.84%.

Heather Kiteley, director of finance & corporate services at Port of Leith Housing Association, said: “We are pleased that Scottish Widows responded so positively to our ambition to address the high demand for the creation of a range of affordable homes in thriving communities.

“Having secured historically low fixed rate terms puts us in a strong and secure position to give several hundreds of people the priceless security that comes with having a great, affordable place to call home.

“It has been a pleasure working on this opportunity with Scottish Widows and with our treasury advisers, Link, and legal advisors, Harper Macleod.”