25 January 2010

News Release

HOUSING ASSOCIATION COMMITS TO CONSTRUCTION OF MORE THAN 160 AFFORDABLE HOMES IN WALES AFTER SECURING FUNDING FROM THE CO-OPERATIVE BANK
Housing association Melin Homes Limited is progressing ambitious plans to build more than 160 new affordable homes after securing substantial funding from The Co-operative Bank.
The not-for-profit social landlord based in Pontypool has received a £5m loan over 25 years from the South Wales corporate banking centre of The Co-operative Bank in Cardiff.
The loan allows Melin to increase its provision of housing with 167 new homes throughout south east Wales to be brought into management in the 2009/2010 financial year.

Melin already owns and manages over 3,000 homes across five local authority areas in south east Wales. It is playing a major role in helping the Welsh Assembly which governs Wales to meet its target of providing a further 6,500 affordable homes by 2012.

Andrew Hannah, senior business development manager at the corporate banking centre in Cardiff. said: “The Bank prides itself on its commitment to social and ethical investments and causes so our funding of Melin very much meets our criteria and we were delighted to help with the essential provision of affordable homes.

“We have a strong pipeline of deals going into 2010 and even in today’s tough economic climate, we’re very much open for business and lending to quality businesses with impressive strategies, such as Melin Homes Ltd.”

Peter Crockett, deputy chief executive of Melin Homes, said: “We are committed to providing affordable homes and this has become even more important given the current economic climate. With the help of lenders like The Co-Operative Bank we are bucking the trend and continuing to develop high-quality affordable homes for people who need them”.
Ends.

Notes to editors:
About The Co-operative Bank corporate banking:

· In the 28 weeks to July 25 2009 the corporate banking division of Co-operative Financial Services increased its corporate deposit balances by 21% to £11.2bn and corporate lending balances by 12% to £9.9bn.

· The corporate banking division’s contribution reflected strong growth in operating income because of the higher lending and deposit balances.

· The number of corporate banking centres nationwide is now 20 following openings in Southampton, Edinburgh, Glasgow, Cambridge, Altrincham and Chelmsford. This expansion of the centre network allowed the Bank to grow its corporate customer relationship base in business communities where it had not previously operated.

For more information please contact Justin Strong, associate director, SKV Communications on 0161 838 7770 or email: Justin.strong@skvcommunications.co.uk
Duncan Bowker, Co-operative Financial Services Press Office, tel: 0161 827 5617 or e-mail: duncan.bowker@co-op.co.uk or Paula Skyrme, Communication Officer at Melin Homes on 01495 745907 or email paula.skyrme@melinhomes.co.uk