Financial Services

AIB launches €300m social housing fund

Development funding can be provided at higher than usual debt-to-equity levels

From left to right: Colin Hunt, CEO, AIB, Cathy Bryce, Head of Corporate & Institutional Banking, AIB and Minister for Housing Darragh O’Brien launch AIB’s €300 million Social Housing Fund which will help over 2,000 people across the county receive the keys to their own homes. Photograph: Julien Behal

Thu Oct 1 2020 - 05:00

A new €300 million social housing fund launched by AIB will help approved housing bodies and developers deliver more than 2,000 social housing units, according to the bank.

The announcement of the fund follows the bank’s previous €100 million social housing fund, which has helped deliver more than 800 social housing units over the past two years, it said.

"Having fully allocated our initial €100 million social housing fund, it is vital that AIB continues to support the sector in delivering new stock," said AIB chief executive Colin Hunt.

“To date we have provided over €500 million in funding to help deliver new social housing units, creating sustainable homes that are the heart of the community and our society.”

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The announcement was welcomed by Minister for Housing, Local Government and Heritage Darragh O'Brien.

“My department will continue to work together with local authorities and approved housing bodies to support them to provide these homes as quickly as possible.”

The development funding can be provided at higher debt-to-equity levels than for private schemes based on the purchase contracts from local authorities and approved housing bodies. It is expected it will be fully allocated over a two-year term.

Separately, AIB has renewed its partnership with the Irish Council for Social Housing and is sponsoring its annual conference, which takes place virtually from October 7th-9th. Mr O’Brien will be among the speakers.

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