NatWest Group has issued its first Electric Vehicle Green bond (the “EV Green Bond”) raising net proceeds of €750 million from institutional investors based in the UK, Europe & Asia.
The issuance makes NatWest Group the first UK bank “to issue a green bond where the use of proceeds are intended to exclusively finance or re-finance1 electric vehicles.”
The electric vehicle financing the EV Green Bond “is intended to support will originate from the banking group’s asset finance arm, Lombard.”
Lombard, which recently won the accolade of Best Business Motor Finance provider, is the UK’s largest asset financier based “on net lending volume.”
In 2023, Lombard provided UK business “with over £2.3bn of climate and sustainable funding for sustainable transport.”
Stuart Clark, Head of Climate Transition for Lombard said:
“Being the first UK bank to issue a green bond dedicated to financing and refinancing electric vehicles further underscores our commitment and ongoing support to our customers in their transition to net zero. The automotive sector is a key enabler for the UK economy and we are committed to continuing to work with the industry towards its decarbonisation goals through providing a range of funding and leasing solutions. Lombard is one of the UK’s leading supporters of the automotive sector and we expect to continue to see growth in demand to fund low emission vehicles in the future.”
In 2019, the bank developed its Green, Social & Sustainability Financing Framework (the “GSS Framework”).
Since launching the GSS Framework, up to 31 December 2023, NatWest Group has issued three social bonds and three green bonds “with a combined aggregate principal amount at issuance of £3.9 billion.”
The impact of the green bonds for the 12-month period “ended 31 December 2023 is an estimated 0.121 million tonnes of CO2e emissions avoided.”
NatWest Group intends to “report on the allocation of the proceeds of the EV Green Bond and provide an estimate of the resulting tailpipe CO2 emissions avoided, based on management information and/or industry data, within 12 months of the date of issuance.”
As covered, NatWest Group is a UK-focused banking organization, “serving over 19 million customers, with business operations stretching across retail, commercial and private banking markets.”
