NatWest Group pioneers UK’s first EV financing bond.

NatWest Group has marked a significant milestone by issuing its inaugural Electric Vehicle Green bond, raising a substantial £631 million from institutional investors across the UK, Europe, and Asia.

NatWest Group makes history with the first-ever bond by a UK bank solely dedicated to financing and re-financing electric vehicles.

This groundbreaking issuance positions NatWest Group as the pioneer among UK banks in issuing a green bond with proceeds specifically earmarked for financing electric vehicles.

The funds raised through the EV Green Bond will contribute to the financing of electric vehicles facilitated by the banking group’s asset finance division, Lombard. Lombard, recently recognised as the Best Business Motor Finance provider, stands as the UK’s largest asset financer in terms of net lending volume. In 2023 alone, Lombard extended over £2.3 billion in climate and sustainable funding to support businesses in adopting sustainable transport solutions.

Stuart Clark, the head of climate transition for Lombard, expressed, “Being the first UK bank to introduce a green bond dedicated to electric vehicle financing reaffirms our unwavering commitment to assisting our customers in transitioning towards net zero. The automotive sector plays a pivotal role in the UK economy, and we are dedicated to collaborating with the industry to achieve its decarbonisation objectives through a range of funding and leasing options. As a leading supporter of the automotive sector in the UK, Lombard anticipates a surge in demand for funding low-emission vehicles in the foreseeable future.”

Back in 2019, NatWest Group developed its Green, Social & Sustainability Financing Framework (the “GSS Framework”). Since the framework’s inception, up until 31st December 2023, the group has issued three social bonds and three green bonds with a cumulative principal amount of £3.9 billion. The positive impact of the green bonds for the year ending 31st December 2023 equated to an estimated avoidance of 0.121 million tonnes of CO2e emissions.

NatWest Group is committed to disclosing the allocation of the EV Green Bond proceeds and providing an estimate of the resultant reduction in tailpipe CO2 emissions within 12 months of the bond’s issuance date, drawing upon management information and industry data.