West Midlands firms snapping up new green bond

FIRMS in the West Midlands are snapping up a new green bond. Almost a quarter (22%) of all lending under an inaugural Environmental, Social and Governance (ESG) bond from Lloyds Banking Group has been allocated to  businesses in the region.
 
Firms have received £54m from a total of £250m allocated to eligible borrowers nationwide. This comes just six months after Lloyds became the first UK bank to issue an ESG bond.
 
Nationally, 1,371 SMEs across 17 industrial sectors have benefited from 1,468 loans extended under the bond.

Underpinned by the bank’s Helping Britain Prosper plan, the proceeds from the bond, raised predominantly from socially responsible investors, have been allocated to help firms with strong social and environmental qualities.

Nationally, more than 96% of loans have been made to borrowers in the most economically deprived areas of the UK, including a significant proportion in Birmingham, Manchester and Newcastle Upon-Tyne.
 
Proceeds from the bond have been used to finance small-scale renewable energy companies (0.3%), manufacturers (7.4%) and healthcare providers (7.7%). For example, more than £19m was allocated to 79 healthcare providers located in disadvantaged areas.

Mark Cadwallader, Area Director, SME Banking for Lloyds Bank Commercial Banking in the Midlands said: “Investor appetite across the Midlands was very strong for Lloyds Bank’s first Environmental, Social and Governance bond, demonstrating the growing importance of socially responsible lending and investing.

“That we have been able to directly attribute the creation or safeguarding of more than 358 jobs to the bond, with many more benefitting indirectly, is a resounding endorsement of our commitment to Helping Britain Prosper.”
 
The bank is now looking at options to bring further ESG bonds to market.