Lloyds Banking Group have announced the launch of £1bn in cut-rate loans to help improve energy efficiency in the built environment.
Real estate clients who are looking to improve the energy efficiency of their building portfolios will be able to apply for a share of the funding, which offers discounts of up to 20 basis points on loans of £10m or more to help achieve sustainability targets.
Lloyds will work with environmental consultants Trucost to create a series of benchmarks to assess buildings put forward for funding, and set targets borrowers must meet to receive the improved loan margin.
John Feeny, Global Head of Commercial Real Estate at Lloyds, said: “Clients say this is becoming more important… They are being asked questions on sustainability by their investors and bondholders. The listed companies are doing a great job but it’s not just them… the private equity guys are saying their limited partners want the green component.”
The loan scheme would provide what Lloyds have called “an extra incentive – a club that clients want to join” and would offer savings within a short period of time.
With 36% of carbon emissions in the UK caused by the built environment, everybody here at Syntegra believes that the news comes as a welcome incentive for the significant push to improve the efficiency of buildings to help the UK reach its sustainability commitments.
