The Housing Finance Corporation (THFC) has announced that the European Investment Bank (EIB) has agreed to provide £345 million long term funding to be invested housing regeneration projects in the Regions of the UK.

This will be the sixth tranche of funding EIB has provided for this purpose through THFC in their 11 year relationship and will be the most regionally focussed to date.

THFC will on-lend the funding to Housing Associations for specific regeneration projects potentially ranging from the Shetland Islands to Anglesey and Cornwall. Although a portion of the funding is likely to be allocated to English regeneration areas such as Greater Manchester, Derbyshire and Cornwall, a significant part of this overall funding will go directly to Housing Associations based in Wales, Scotland and Northern Ireland.

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Speaking about the new project, THFC's Chief Executive, Piers Williamson said: "We are excited to be working with EIB in placing this facility in the UK regions. We have already had a really enthusiastic response.

"In Wales we have also been able to work in partnership with the significant regional funder, Principality Building Society, to bring up to an extra £30m of investment alongside EIB.

"This whole project is a first rate example of Europe being able to facilitate positive outcomes in the UK," he explained.

THFC is targeting finalising the regional allocations of this funding by the end of December and the total facility should be drawn down in 2010.

The facility is likely to be on-lent to around 30 Housing Associations, and brings the total amount of EIB funding that THFC has brought into the sector since 1998 to £820m.

(CD/BMcc)