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Britain's newly established National Wealth Fund (NWF) has secured a landmark £1bn agreement with two of the nation's largest high street banks, Barclays and Lloyds Banking Group, to retrofit thousands of homes with energy-efficient upgrades.
Sources familiar with the matter have revealed that the government-backed fund will provide partial guarantees on loans issued to housing associations across the country, paving the way for the much-needed modernization of Britain's housing stock. This initiative represents one of the first significant deals since the NWF's inception and is expected to be officially announced in the coming days.
A banking insider emphasized that this collaboration between the NWF and the two high street giants will allow a significant number of homes to undergo retrofitting, enhancing their energy efficiency. They hailed the agreement as a prime example of the public and private sectors joining forces to achieve meaningful social impact.
While the exact scale of the state-backed loan guarantees remains unclear, it's understood that a related agreement with the Housing Finance Corporation, valued at around £150m, will also be unveiled alongside the larger deal with Barclays and Lloyds.
The NWF's creation is part of a broader restructuring that sees it absorb the UK Infrastructure Bank. Chancellor Rachel Reeves announced the government's plans to inject £5.8bn into the fund this week, a figure slightly below the £7.3bn pledged by Labour in its election manifesto.
Barclays and Lloyds have declined to comment on the deal, while the Treasury has been contacted for further information.
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