Virgin Money launches sustainability-linked loans
Finance & Funding
Virgin Money launches sustainability-linked loans
Virgin Money is the first bank in Europe to offer sustainability-linked loans (SLL) in commercial banking.
Access to the loans are based on a digital tool created in partnership with Future-Fit Foundation. This will assess and generate an Environmental, Social and Governance (ESG) score for a business.
By waiving arrangement fees for companies that can prove they’re committed to creating a sustainable future, Virgin Money will reduce the cost of finance. The challenger bank’s aim is to encourage businesses to address their environmental and social impacts.
Click on the below for more information...
1
Will my business be eligible?
The sustainability-linked loans (SLL) is available to all UK companies.
2
What will the application process be?
Each company will need to use a digital tool to answer a series of questions to determine their environmental, social and governance performance, which centre around the 17 UN Sustainable Development Goals.
The tool, developed in partnership with Future-Fit Foundation, also provides information on what to prioritise and take action on to make further sustainable progress within their business.
3
What are the benefits?
For those eligible customers borrowing at least £250,000 and with a sufficiently strong ESG assessment, the SLLs provided by Virgin Money will have reduced or no arrangement fees.
Virgin Money has stated that by 2027 their ambition is for 10% of all business lending balances to be through Sustainability Changemakers.
4
Where can I get more information?
To help businesses understand more about the ethos behind the SSL loans and if they’re suitable, Virgin Money and Future-Fit Foundation have jointly published a case study report, which also includes details of the assessment tool.
The Virgin Money Sustainability Benchmarking Tool: How banks can use the Future-Fit Business Benchmark to help build a better future can be accessed here.
Next steps...
- Review your sustainability practices within your business.
- If you think you could be eligible, visit Virgin Money UK.