A £40m funding facility has been secured by housing association Hanover Scotland.

The agreement is the first of its kind in the social housing sector.

The transaction combines a five-year £20m revolving credit facility and private placement.

The funding, which was arranged by Bank of Scotland, will be used to support Hanover's ongoing development plans, particularly focusing on housing for older people.

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In addition, a £20m private placement to by funded by an institutional investor has been agreed.

This finance, which will be drawn down in 2018 and mature in 2048, will be used to repay the RCF which will itself be adjusted to £5m in 2018.

Helen Murdoch, Chief Executive, said: "The versatility of the structured borrowing fully meets our planning requirements. Hanover has an established history in providing high quality affordable housing for the elderly and this funding will enable us to continue to meet our ambitions to provide much needed new homes."

(LM/MH)