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14 December 2017

Barclays launches a new series of corporate green finance products

The banking giant Barclays has launched a series of green investment products aimed at engaging not only its large corporate clients, but also small to medium-sized companies to pursue green investments.

The new range includes green loans targeting large clients which need financial support of more than £3 million across the UK, as well as international green loans for companies which are keen to invest in sustainable projects overseas.

Green asset finance and green innovation finance tools will also be available for small to medium-sized companies. Green deposits will also allow Barclay’s largest corporate clients to contribute to the bank’s green bonds.

Karl Nolson, Head of Global Lending Group at Barclays Corporate Banking, explained that Barclays is responding to the demand for green financing products because clients have started to recognise the policy push from governments towards sustainability and they can also see the economic potential ‘green growth’ offers.

He said: "We're seeing a step-change in how businesses approach sustainable investment”.

"For too long, green projects have been viewed as an added extra, but what we're increasingly hearing from our clients is a shift in mindset, with sustainability becoming more central to their overall investment strategy”.

He added: “As always, we want to help our clients stay ahead in an evolving world”.

Barclays explained that eligible projects will be selected using the Green Product Framework- a tool developed in partnership with Sustainalytics, a financial consultancy focused on incorporating ESGs into investment processes.

Qualifying projects will need to focus on energy efficiency, renewable energy, green transportation, sustainable agriculture, and sustainable waste and water management.

Last month, Barclays issued a €500 million green bond using funds backed by domestic assets. The green bond will be used to refinance mortgages on residential properties based on their carbon intensity.

Tushar Morzaria, Group Finance Director at Barclays said that this issuance “will help us diversify our investor base, attracting interest from the growing group of environmental, social and governance (ESG) investors”. 

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