Barclays unveils dedicated Green Trade Loan
Barclays has launched a new loans product to help businesses meet working capital needs related to green projects.
The new Barclays Green Trade Loan will help companies securing working capital for activities such as renewable energy, energy efficiency and waste management projects. Qualifying activities are defined in the Barclays Green Product Framework, developed with the support of consultancy Sustainalytics.
The move follows the bank’s decision late last year to develop a range of Green Loans, which targets UK clients who require more than £3m in funding. Last month, Barclays launched a Green Home Mortgage scheme, offering homebuyers preferential interest rates and savings of more than £1,300 on energy-efficient new build houses.
Barclays’ global head of trade and working capital Baihas Baghdadi said: “Late last year, we launched a range of products to encourage more environmentally conscious activity from our clients, but knew that developing a dedicated proposition to meet working capital needs and targeted at increasing sustainable trade was also required to support UK businesses’ aspirations.
“We’re proud that the Barclays Green Trade Loan is now available to facilitate more green trade and hope that it will play a big part in building momentum in support of the transition to a low-carbon future.”
Barclays is also working with the UK’s export credit agency UKEF to help exporters access the finance required to sell their green products and services overseas. Projects eligible for Barclays Green Trade Loans may also benefit from UKEF’s Export Working Capital Scheme, allowing the bank to support a wider range of sustainable initiatives.
The banking firm offered its mortgage scheme as part of a response to the recommendations of the UK Government’s Green Finance Taskforce, established to assist the low-carbon economy and boost the UK's position as a "world leader" in clean growth investment.
The Taskforce recently published a ten-point list of investment guidelines, including new measures for residential and commercial properties, boosting investment into innovative clean technologies and creating a Green Investment Accelerator for early stage technology grant funding.