Caerphilly-based housing association United Welsh has borrowed £25 million to help it build 300 new homes over the next two years.
The agreement with Affordable Housing Finance was completed with funding provided by the European Investment Bank (EIB) and will see United Welsh borrow the money at rates of less than 2%.
Once completed, the new developments will bring United Welsh’s total housing stock to more than 6,000 properties across South Wales.
Lynda Sagona, United Welsh Chief Executive, said: “This funding will help us continue to make a real difference to people’s lives and help ensure Wales moves closer to having the 20,000 affordable new homes it needs.”