Barclays to introduce working capital loans for green projects
(2 May 2018 – UK) Barclays has announced a new ‘green trade’ working capital product, offering loans for 30 to 365 days to support business transition to a low-carbon future.
The bank will provide a minimum of 250,000 to eligible initiatives, including projects to promote energy efficiency, eco-friendly transport, waste management, renewable energy, sustainable food, agriculture and forestry, and sustainable water management.
To qualify for funding a business must meet the criteria set out in Barclays’ Green Product Framework, developed in 2017. Existing customers of the bank as well as non-customers can apply for the green loans.
The initiative is primarily aimed at companies looking to borrow for their own working capital needs however the bank is also able to provide the green funds as supply chain finance, financing a firms’ suppliers directly.
Baihas Baghdadi, global head of trade and working capital at Barclays said, “Late last year, we launched a range of products to encourage more environmentally conscious activity from our clients, but knew that developing a dedicated proposition to meeting working capital needs and targeted at increasing sustainable trade was also required to support UK businesses’ aspirations.”
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