It is part of the lender's environmental, social, and governance strategy
Later life lender LiveMore Capital has launched a social bond framework, a move that is seen as a major step in the lender’s ongoing journey to become one of the market leaders in sustainable lending.
Social bonds are used to finance projects which address social issues, providing investors with the opportunity to invest in positive social change.
LiveMore’s social bond framework, which is also part of its environmental, social and governance (ESG) strategy, has been developed based on the rules of the International Capital Market Association (ICMA), which promotes the sustainable development of the international capital and securities markets.
The framework is supported by a second-party opinion by ISS Corporate Solutions Limited, certifying that the lender’s mortgage portfolio is a socially sustainable investment.
LiveMore pointed out that its mortgages perform a vital social role in providing solutions to borrowers who are unable to qualify for a traditional mortgage due to their age. Without more flexible financing solutions like the ones that they offer, LiveMore said older borrowers risk becoming mortgage prisoners or face having to sell their home.
“Most mortgages don’t have a social angle, but our products do,” Alexandra Hansmeyer, head of legal at LiveMore Capital, commented. “They are for borrowers that other lenders don’t want to lend to because they’re deemed too old, which is wrong on so many levels.”
LiveMore, which has recently secured a credit facility of up to £250 million, said it is exploring further opportunities under the ICMA Green Bond and ICMA Sustainability Bond principles, with a view to launching products which help finance progress towards environmental and social sustainability in the near future.
It added that it continues to work towards being a carbon net zero firm, offsetting its carbon emissions through partnering with Trillion Trees, a global reforestation project. The lender committed that for every mortgage it sells, it will plant trees.
“We believe our social bond framework and future plans to expand on this with the likes of green mortgages are positive attributes for a modern, ethical mortgage lender,” Hansmeyer stated. “Our partnership with Trillion Trees is hugely important to us, along with our commitment to sustainability and our carbon net zero target.”
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