A total of 400 new affordable homes are to be built across Scotland over a five-year period after Cairn Housing Association secured a £50 million funding boost.

The Scottish housing association completed a multi-million pound placement deal with a US insurance company to support its enhanced development programme.

The funding will also include significant investment to current Cairn homes and the remodelling of their retirement courts.

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The 35-year private placement will be drawn down in two stages over the next two years, with the first tranche transferring this week. Cairn secured significant interest from several investors at highly competitive rates and terms.

Cairn has been supported in securing the deal by Santander Global Corporate Banking and legal advisors Harper Macleod. Cairn's current loan portfolio will continue to be supported by its existing lenders, Abbey National Treasury Services and the Royal Bank of Scotland, who have both been working in partnership with Cairn for almost 20 years.

(CM/MH)