Bank of Ireland has announced that it is tripling the limit on its Green Business Loan, meaning that businesses that meet the sufficient criteria can now access discounted finance to the value of €1 million, up from the previous €300,000.
Commenting on the move, John Feeney, CEO, Corporate and Commercial, Bank of Ireland, said that “the path to sustainability can be complex for many businesses. Our goal is to make it easier and faster to access sustainable finance, with greater flexibility and choice.
“We are committed to helping businesses reduce their environmental impact while also lowering their operating costs.”
Loan terms
According to the bank, loan amounts of €1,000 to €1 million are available, with extended loan terms of up to seven years, and discounted variable interest rates ranging between 4.41% and 6.21%.
To access the loans, businesses and farmers need to provide evidence of sustainability improvements, such as investment in renewable energy, clean transport, LED lighting, rainwater harvesting systems, or waste reduction measures. Loan amounts of up to €500,000 can be applied for online, while loan amounts above that require in-person applications through Bank of Ireland’s branch network.
Sustainable Finance Framework
The Green Business Loans initiative aligns with Bank of Ireland’s Sustainable Finance Framework. A range of complementary products, such as its Enviroflex sustainability-linked loans are currently available to more than 95% of Irish dairy farmers via partnerships with 13 co-operatives.
Bank of Ireland has set a target of delivering €15 billion in sustainability-related lending by the end of 2025, a goal it is expecting to reach ahead of schedule.
Elsewhere, Bank of Ireland has launched a digital platform, the Sustainable Business Coach, to support SMEs with sustainability planning and help them to identify their ESG priorities. Read more here.
Read more: Financial institutions ‘leveraging their influence’ to drive environmental efforts
