Barclays offers £50m in loans for environmental initiatives

30 April 2008

Barclays Commercial Bank has launched a loan that offers businesses a cash back payment when they take out finance for initiatives that benefit the environment. Working in partnership with the European Investment Bank (EIB), Barclays Commercial Bank is making £50m available to businesses undertaking investment in sustainability projects in the UK.

The loan is offered after Barclays research shows that a third of UK manufacturers now see the green agenda as an opportunity. Businesses can benefit from cash back payments ranging from £600 to £51,000 for a range of capital expenditure projects that cost between £200,000 to £17m*, whether it be investment in low carbon plants or machinery, or relocation to more energy efficient premises.

Ray O’Donoghue, Head of Manufacturing, Barclays Commercial Bank, said: "The bottom line benefits to manufacturers operating more responsibly are becoming increasingly acknowledged. Our research shows that 32 per cent of UK manufacturing companies now see the green agenda as an opportunity rather than a challenge. We are committed to supporting customers that are reducing their environmental impact and this scheme will further encourage sustainable business practices by reducing the cost of borrowing"

The scheme is available for loans between £100,000 and £8.5 million, with a minimum term of five years. It must support a capital investment project that has not previously received EIB benefit and is applicable to businesses that have fewer than 250 employees.

This scheme is part of Barclays Commercial Bank’s environmental proposition which includes access to Barclays Capital’s award winning carbon emissions trading. Businesses can go to www.barclayscommercial.com/environmentfor further guidance on environmental issues.

Barclays Commercial Bank is also sponsoring the Green Leaders in Business Awards, a search for UK and Ireland’s top businesses that are developing and implementing innovative new solutions to help the environment. Companies wishing to enter the awards have until 9th May 2008 to complete and return their applications. www.barclayscommercial.com/greenleaders