New affordable homes will be built in the Fort William area as a result of the Scottish Government investing over £2.5 million in charitable bonds.
Charitable bonds are ethical financial products – no profit is taken by Allia, a social investment charity who issues the bonds on the Scottish Government’s behalf. Allia have provided Lochaber Housing Association with a loan of over £2 million.
The interest on the loan, over half a million pounds, is converted into a charitable donation, which the Scottish Government gives to housing associations for the construction of new social housing
There has been considerable success with previous charitable bonds that have been issued with total investments now over £40 million.
This seventh bond provided development finance for 581 affordable homes, and generated over £9 million for charities of which £6.7 million will go towards the construction of new social housing.
Housing Minister Kevin Stewart said:”Good quality, affordable housing is essential to help attract and retain people in Scotland’s remote and rural communities.
“We have committed to deliver 50,000 more affordable homes over the next five years, backed up with investment of more than £3 billion. Announcements such as this one today marks another step on road to delivering that pledge.
“Innovative financing schemes such as charitable bonds play a major role in helping us deliver this major expansion in housing supply. We invested £25 million last year and have committed to invest the same again this year and we remain the only Government in the UK to do so.
“Through these bonds we are also maintaining Scotland’s leadership in financial innovation, working with partners to deliver more for less public investment.”