Hill refinances as it seeks to double turnover

Hill Group has refinanced its loan portfoilio as it seeks to double in size by 2025.

The UK’s second-largest privately-owned housebuilder has announced it has increased a revolving credit facility by £20 million to £220m, with Lloyds, Natwest, HSBC and Santander each committing £55m.

Hill, which currently builds around 2,000 homes a year is aiming to double its turnover to £1.2bn by 2025.

The financing has been described by Hill as a ‘sustainability-linked loan’. This means interest costs will reduce as green criteria are met, including biodiversity net gain, reduced operational carbon, reducing scope 1&2 carbon and the company’s overall sustainability rating as measured by the NextGeneration scoring system.

Tony Parker, finance director at Hill, said:’’ Our sustainability-linked loan refinancing is an important step in our overarching group vision to become a leading sustainable housebuilder in the UK.

“We are extremely pleased with the confidence that these leading banks have placed in our long-term development plans.’’

Hill Group announced in June it is to setting up its own bespoke modular housing factory after buying a 50% stake in an offsite producer, Volumetric Modular, last year.