Optivo has secured a revolving credit facility from the UK arm of First Abu Dhabi Bank
Optivo, one of the largest social housing providers in the UK, has secured a revolving credit facility worth £50 million ($60.6 million) from the UAE's largest bank.
The three-year deal with the UK unit of First Abu Dhabi Bank is part of a £200 million financial boost for Optivo as it looks to build 4,850 new homes over the next three years.
The funding also includes a five year £100 million revolving credit facility with Barclays and a five year £50 million facility with BNP Paribas.
Sarah Smith, chief financial officer at Optivo, said: “This funding ensures financial stability during a crucial time for us. Demand for affordable homes is extremely high and, as a housing association, we have responded by planning to start 4,850 homes over the next three years.
"We are delighted to have significant financial support from Barclays, BNP Paribas and First Abu Dhabi Bank UK. It not only shows confidence in Optivo but the UK social housing sector as a whole.”
She added that both BNP Paribas and First Abu Dhabi Bank UK have given the option to increase facilities to £75 million.
Tim Luckhurst, executive director, First Abu Dhabi Bank UK, said: “FAB UK is delighted to partner with Optivo to support their efforts to deliver new homes over the next three years, as well as assisting their residents into work and training. We are committed to being a responsible company by conducting our business in the way that balances people, profit and social conscience.”
This new funding is in addition to Optivo's £44.9 million partnership with Homes England to build 1,000 homes outside London by March 2022.
It also secured £88.4 million from the Greater London Authority in July 2017 to build 2,600 homes in London while A further £57.2 million was agreed in August 2018 to deliver 1,000 more affordable homes in the capital.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.