BNP Paribas Fortis grants the Brussels Housing Fund its first social loan
The Brussels Housing Fund needed financing of 100 million euros for its 2021 mortgage loan programme. BNP Paribas Fortis helps out the fund by granting it a social loan of 40 million euros. The Housing Fund, whose main mission is to promote access to housing for medium- and modest-income families in Brussels, is therefore part of sustainable finance.
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After green bank and bond financing, and sustainability-linked financing (scaling the credit margin to ESG criteria), social loans are next in line to benefit from guidelines. With this in mind, the Housing Fund of the Brussels-Capital Region (Fonds du Logement de la Région de Bruxelles-Capitale) contracted its first social loan from BNP Paribas Fortis to finance the first part of its 2021 loan programme.
It is a first for the Housing Fund which, with the help of BNP Paribas Fortis, has set up a sustainable finance framework aligned with the social lending principles of the Loan Market Association. These principles include recommended guidelines, applicable on a voluntary basis, and create a framework of clear, transparent and consistent market standards for the development and integrity of social loans. In particular, these principles specify the allocation of borrowed funds compatible with a social loan.
To be able to raise funds in the form of social banking credits, the Housing Fund, with the help of BNP Paribas Fortis acting as 'sustainability coordinator', has set up a clear framework for the assessment and selection of eligible social projects, the allocation and management of loaned funds, as well as the reporting to be performed. The Brussels cooperative company will be able to use this financing framework for its future loans, such as for the launch of its second tender for 2021, amounting to 86 million euros.
Catherine Scheid, General Manager of the Housing Fund, explains: “This new financial focus of the Housing Fund is fully in line with its social mission. With this new financing framework, the Housing Fund commits to financing with social added value and contributes to the sustainable development goals.”
“Social loans expand our range of sustainable financial products that this time focus on the ‘S’ of ESG criteria”, explains Didier Beauvois, Head of Corporate Banking and member of the BNP Paribas Fortis Executive Committee. “We are very pleased to help the Housing Fund of the Brussels-Capital Region to take a new step towards integrating sustainability into the company’s financing activities. This new framework will help the Housing Fund create a positive impact through the financing and/or refinancing of projects that have a beneficial effect in the areas of mortgage loans.”
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Press contacts:
Ms Hilde Junius | Press Officer BNP Paribas Fortis
+32 (0)478 88 29 60
hilde.junius@bnpparibasfortis.com
Mr Valéry Halloy | Press Officer BNP Paribas Fortis
+32 (0)475 78 80 97
valery.halloy@bnpparibasfortis.com
Ms Hélène Tenreira | Press Officer Housing Fund
+32 (0)472 77 46 09
helene.tenreira@fonds.brussels
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About:
The Housing Fund of the Brussels-Capital Region (Fonds du Logement de la Région de Bruxelles-Capitale) (www.fonds.brussels) has been working for more than 30 years to enable Brussels citizens to fulfil their fundamental right to access decent housing. For this purpose, the fund uses various levers: mortgage lending, housing construction and sale, green loans, help in setting up the rental guarantee and renting out accommodations.
