Funding

Vesteda maintains a well-diversified unsecured funding structure, comprising bank debt, Euro Commercial Paper (ECP), private placements, public bonds, and financing from the European Investment Bank (EIB). This diversified profile provides flexibility to access various debt markets at any time, ensuring robust financial management. The structure is underpinned by Vesteda’s A- credit rating from Standard & Poor’s, which supports competitive funding conditions.

In recent years, Vesteda has increasingly aligned its funding strategy with its sustainable profile. The company issued green bonds in 2019, 2021, and 2024, arranged a green private placement in 2020, and secured EIB financing for affordable housing in 2020 and 2022. In 2024, Vesteda also refinanced its sustainability-linked Revolving Facility Agreement (RFA). These transactions reinforce Vesteda’s commitment to sustainability and social responsibility, while diversifying its funding sources and contributing to a more competitive cost of debt.

Debt maturity schedule (€ million)

Vesteda has two financing agreements with the European Investment Bank (EIB), each totalling €150 million. The proceeds from these facilities are used to finance projects in (regulated) mid-rental housing and to enhance the sustainability of our existing portfolio, which together account for up to 50% of total investments. Both agreements have a 10-year term and provide flexibility through fixed-rate and floating-rate funding. In 2025, Vesteda drew the remaining €75 million under the second EIB facility. Both facilities are now fully utilised, with approximately 75% at a floating rate and 25% at a fixed rate.

Vesteda has a €650 million Sustainability-Linked Revolving Credit Facility, and in 2025 extended the maturity of this facility by one year, to 2030 from 2029. This facility incorporates four key performance indicators (KPIs) that measure Vesteda’s progress on the sustainability front: achieving a minimum GRESB score, installing solar power capacity, reducing Scope 1, 2, and 3 carbon emissions by 55% (compared to 1990), and outperforming the IVBN benchmark on tenant satisfaction.

These KPIs are fully aligned with Vesteda’s sustainability objectives and embedded in its corporate strategy. Meeting the majority of these KPIs results in a reduction of the interest margin, while failure to achieve them leads to an increase. This structure provides a strong financial incentive for Vesteda to continuously improve its sustainability performance.

In July 2025, Vesteda secured a €300 million standby revolving credit facility to strengthen its financial flexibility. This facility supports the maintenance of a robust liquidity position in line with the requirements of our credit rating agency, S&P, and provides additional flexibility for refinancing the bond maturity scheduled for July 2026.

Our funding strategy is based on the following funding targets:

1. Leverage of ≤ 30%;

2. Total fixed-rate and hedged floating rate exposure of ≥ 70%;

3. Weighted average maturity of ≥ four years;

4. Diversified funding profile, with at least three funding sources;

5. Sufficient liquidity headroom: to refinance debt, finance committed pipeline, and to accommodate redemption requests (Redemption Available Cash);

6. Maturity calendar ≤ 35% maturing in a single year;

7. Asset encumbrance ≤ 15% long term.

At year-end 2025, we met all our funding targets.

Vesteda’s average weighted maturity of debt was 4.2 years, above our long-term minimum target of four years. The average total debt interest rate was 2.4% in 2025, compared with 2.5% in 2024. The loan-to-value ratio was 24.3% at year-end 2025, compared with 25.6% at year-end 2024. The interest cover ratio stood at 4.9 at year-end 2025, compared with 4.3 at year-end 2024.

Vesteda's main financial covenants, as part of its financing agreements, are a maximum loan-to-value ratio of 50% and a minimum interest cover ratio of 1.8. We comfortably met all the financial covenants of our financing arrangements in 2025. Vesteda’s funding targets contribute to its robust, well-diversified and flexible funding structure. Within this funding structure, Vesteda is always looking to further optimise its average cost of debt by making use of different funding instruments at different maturities, and through floating or fixed rate debt. Please see Note 34 for more information on 2026 developments. 

Debt portfolio at year-end 2025