The registered charity will use the funding to raise living standards in the affordable housing market, with a focus on the sustainability and energy efficiency of the existing properties, in support of Scotland’s journey to net zero and in recognition of the current rising cost of living facing families and individuals.

Today’s announcement means that River Clyde Homes will be able to pursue its key investment priorities for tenants, centred on increasing thermal comfort, reducing energy demand and bills, improving air quality, lowering carbon emissions, and creating future-proofed homes that will stand the test of time.

Royal Bank of Scotland’s funding package is made up of £20m of new funding along with a £97.5m refinancing restructure, providing River Clyde Homes with the confidence and necessary flexibility to pursue business objectives that support local communities and tenants.

Formed in 2007, the organisation manages over 6,000 homes and provides factoring services to a further 2,200 customers in the Inverclyde area. River Clyde Homes is also a key source of employment in the region with around 300 current members of staff.

The announcement continues to deliver on Royal Bank’s commitment to provide £3 billion to support the advancement of the UK’s social housing sector. The bank is set to complete this objective in 2022.

Royal Bank recently published the findings of the November 2022 ‘Springboard to Sustainability Report’ which found that meeting net zero targets would give Scotland’s economy a £22bn revenue boost between now and 2030. The buildings sector accounted for 44% of the revenue opportunity that could be realised through the delivery of improvements to premises such as insulation and the installation of heat pumps.

John Wright, executive group services director at River Clyde Homes, said: “We are delighted to have continued our long-standing relationship with Royal Bank of Scotland as a key funding partner. Securing this funding is a major milestone for River Clyde Homes and the flexibility within this funding package will help us to deliver our future ambitions.

“These include enabling significant investment to modernise existing homes for customers and helping River Clyde Homes on its journey towards net zero.

“This investment will not only assist the organisation to lower its carbon footprint but will also help to reduce running costs for customers in the face of spiralling energy prices.”

David Horne, relationship manager at Royal Bank of Scotland, said: “This funding builds on a long-term relationship with River Clyde Homes, who we have supported since transfer in 2007. It will enable the continued support for the development and provision of much needed good quality affordable housing in Inverclyde.

“The funding structure is designed to support the Association as they adapt to short-term challenges in the market such as rising interest rates and inflation, whilst also providing them with long-term stability and confidence to deliver vital infrastructure projects that raise living standards and build closer communities.

“At Royal Bank, we remain committed to tackling the challenges facing the UK’s housing sector while also improving sustainability within the industry.”