The Scottish Government is ploughing £50 million into an ethical financial scheme to support the development of nearly 1,000 new affordable and social homes.
Ministers are investing in charitable bonds, putting in £25 million this year and earmarking another £25 million for 2016/17.
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Four housing associations are set to benefit from the current investment - Kingdom in Fife and Eildon in the Borders, Orkney and Ayrshire.
The bonds are issued by Allia, a social investment charity, and are then bought by the Scottish Government. Allia then uses the money to make loans to the housing associations.
Any interest generated is put into a pot to which social housing organisations can apply for grants.
Ministers said the scheme will provide a new source of finance for housing associations to build around 750 new affordable homes, while interest on the loans will provide grants for 200 social homes.
Social Justice Secretary Alex Neil said they are the only government in the UK taking such an approach.
"Innovative financing schemes such as charitable bonds will play a major role in our approach to supporting a major expansion in housing supply over the next parliamentary term," he said.
"The bonds are ethical financial products that are providing housing associations in Scotland with easily accessible development finance for new affordable homes."
Phil Caroe, Allia's director of social finance, said: "The four loans made by Allia with Scottish Government's investment will have significant benefit for communities across the country.
"We're seeing strong demand already from potential borrowers for next financial year and will be inviting other investors to come alongside the Government to support the development of more affordable housing in Scotland."
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