With the pandemic meaning that many planned housing developments were paused or delayed, RBS stepped in to convert an existing £20m term loan into a revolving credit facility, allowing greater flexibility for deployment and use of the funds over a longer period of time. The new SONIA terms are a first for both Hanover Scotland and the bank’s Glasgow team, who arranged the switch.

This flexibility will be essential in re-starting the delayed projects. Their reinstatement will also boost local economies, with contractors already in place to deliver the units. Areas set to welcome developments include Buckie, which is gaining 31 units, Elgin, gaining 45 units, and Drymen, which will welcome 15 new units.

The non-profit, which has been operating for more than 40 years, is one of Scotland’s largest social landlords providing affordable housing and support services for older people. Managing approximately 5,000 properties throughout the country, Hanover additionally provides telecare, community alarm and call centre services for more than 40,000 people – employing over 600 staff.

Donna Henderson, director of strategic finance at Hanover Scotland, said: “The new SONIA terms offered to us bring a much-needed flexibility when we’re faced with temporary site closures, delays and adapting to working in a safe, socially distanced manner on-site.

“The bank’s support has enabled us to extend our allocation of the funds, which can be used over nine years instead of the 12 months initially agreed. This has been vital in ensuring the planned developments can continue to be progressed, allowing us to bring high quality, affordable homes to more people in Scotland. We’re grateful for the bank’s swift work, alongside our solicitors TC Young, and our treasury advisors, ATFS, in completing the deal.”

Alan Newlands, relationship director at RBS, added: “Throughout the past 10 years, we’ve worked with Hanover Scotland to realise their ambitions to provide crucial services within the community – developing innovative homes with pioneering, progressive models of quality care to the elderly.

“With the pandemic presenting an ever-changing landscape, we sought to offer the team funding that suited the ‘new normal’, allowing them to continue with pre-planned developments. We’re delighted to be a part of their story - through them, we are proud to play our role in helping people, families and businesses to thrive.”