Clarion Housing Group’s scale and financial strength delivers a number of benefits:
- Resilience to risk - we are able to manage adverse trading conditions and absorb market shocks.
- Efficiency - we can realise economies of scale, building on our successful track record.
- Influence - our scale affords us the ability to influence government policy for the benefit of our customers, our business and the sector as a whole.
Our business plan has strong growth ambitions, which will be managed through a prudent framework for planning and decision making, provided through a set of agreed “Financial Golden Rules”. These are designed to recognise business risks and govern our operating margins, net debt/turnover, sales as a percentage of turnover and social housing interest cover.
The business plan is also regularly stress-tested, both on single variant scenarios as well as more intense ‘multi-variant’ scenarios.
Clarion Housing Group seeks to maintain diversification in its funding sources with the majority coming from bilateral loans from banks and building societies and the remainder from the capital markets. The Group is committed to maintaining a strong investment grade rating. It is currently rated by Moody’s as A3 and by Standard & Poor’s as A-. Copies of the rating opinions are available on request.
Maintaining a strong financial position enables us to continue building the vital homes the country needs and investing in better futures for our residents and their communities.
Investing in sustainability
We offer investors safe and secure investments, backed by bricks and mortar that also meet rigorous Environmental, Social and Governance (ESG) criteria and deliver impact - not only building new affordable homes, but also helping people into work, and developing sustainable communities.
We are a founding member of the ESG Social Housing Working Group led by impact measurement and management specialist The Good Economy, which has developed a sector-standard approach to ESG reporting.
We have published our first ESG Report for investors in line with this standard and will do so on an annual basis. Download the 2020 report here.
In January 2020 we issued our first Sustainability bond backed by our Sustainable Housing Finance Framework and our certification to the pan-European Certified Sustainable Housing Label, followed by a second sustainability bond in November 2021. These raised £650m for building new affordable and more sustainable homes and demonstrated the confidence investors have in our commitment to sustainability.
Sustainability rating agency imug|rating has done an independent review of our framework.