A new finance product aimed at supporting Irish businesses to achieve their green sustainability goals has been launched.
The Strategic Banking Corporation of Ireland (SBCI) and Business Venture Partners (BVP) have announced a new partnership to launch a new €50m financing initiative, the Green Transition Finance product.
The two groups said the new flexible lending solution is tailored to meet the needs of SMEs and Small Mid-Caps investing in sustainable and green projects and assets, as well as those already operating in a sustainable manner – subject to specific criteria.
Loans range from €500,000 to €5m with terms up to 10 years, with competitive interest rates and flexible repayment terms tailored to support business growth.
The Green Transition Finance product is managed by BVP, a venture investor and fund manager with over 20 years of experience in the Irish market, with majority funding provided by the SBCI.
It benefits from the provision of the InvestEU Sustainability Portfolio Guarantee Product, which is operated by the European Investment Fund (EIF).
Minister for Finance Jack Chambers said the new “innovative and competitive” €50m fund combines the significant financial and investment expertise of the two organisations, particularly in the area of sustainable investment practices.
“It is positive to see the European Investment Bank Group’s backing for this product, which further underlines their strong support for investment in Ireland and Irish businesses. This exciting initiative brings public and private sector together to further us on the transition to achieving Ireland’s climate and sustainability goals,” the Minister said.
“I encourage business owners with an interest in availing of this fund to contact Business Venture Partners,” he added.
European Investment Bank Vice President, Ioannis Tsakiris, said the bank works with leading investment partners across Europe to enable business to contribute to the green transition.
“This unique and visionary cooperation between the EIF, SBCI and BVP will enable sustainable companies across Ireland to grow and accelerate investment to enable businesses to harness renewable energy, cut energy use and adapt to a changing climate,” he stated.
BVP’s CEO Elliott Griffin said that climate change is a very present threat to humanity and there is a real urgency to change how we consume energy and decarbonise the planet.
“Our objective in launching this exciting new product is to help stimulate green initiatives and decarbonisation projects through the provision of competitive and properly structured finance. This Green Transition Finance product will allow us to actively contribute to the creation of a more sustainable future for us all, by supporting those who are currently constructing it,” he said.
SBCI CEO June Butler, said this new and competitive source of funding in the Irish market has been specifically designed to finance sustainable and green investments.
“The Green Transition Finance product provides businesses with the funding needed to achieve their sustainability goals, helping them to remain competitive in a rapidly evolving market landscape,” she said.
She said the SBCI is committed to supporting the transition to a sustainable and climate-resilient economy.
“By increasing access to flexible funding, we aim to play a pivotal role in enabling Irish businesses to drive their sustainability initiatives,” she added.