Virgin Money announced on Tuesday it is launching sustainability-linked loans (SLL) for all UK companies. According to Virgin Money, the SLLs will reduce the cost of finance for those businesses whose core activities proactively help the economy transition to a more sustainable model. Virgin Money claims to be the first bank in Europe to offer such loans in commercial banking and the methodology behind this was created by Virgin Money in partnership with Future-Fit Foundation.
“For those eligible customers borrowing at least £250,000 and with a sufficiently strong ESG assessment, the SLLs provided by Virgin Money will have no arrangement fee. Virgin Money has committed that 5% of all its business loans will be to firms driving environmental and social change by September 2022, as judged by the tool.”
While sharing more details about the loans, Graeme Sands, Corporate and Mid-Market Director, Virgin Money, stated:
“While businesses overwhelmingly recognise the importance of sustainability many, especially SMEs, struggle to translate good intentions into a clear plan and are worried about the cost and time involved in implementing an ESG programme. This is why we partnered with Future-Fit Foundation, to help SMEs and other businesses manage and measure sustainability.”
Virgin Money added that the SLLs will be available in late Spring, with a digital version of the questionnaire tool also available for customers and non-customers alike on the Virgin Money website at the same time.