UK Bank Makes History with €750 Million Bond Focused Exclusively on Financing Electric Vehicles

This week, NatWest Group announced a milestone by issuing its inaugural Electric Vehicle (EV) Green bond, raising a substantial €750 million from institutional investors across the UK, Europe, and Asia. This groundbreaking move positions NatWest Group as the first UK bank to launch a green bond dedicated solely to financing and refinancing electric vehicles.

The newly acquired funds will support EV financing via NatWest Group's asset finance division, Lombard. This initiative builds on Lombard's recent track record of providing over £2.3 billion in funding for sustainable transportation projects across the UK.

"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," said Stuart Clark, head of climate transition at Lombard. "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."

This initiative arrives amid a surge in the UK's electric vehicle (EV) market, which has witnessed a notable expansion. Recent figures from the auto trade body SMMT reveal a 7.4% increase in new EV sales for June, pushing the market share of zero-emission vehicles to a record high of 19%.

The EV sector is projected to maintain its robust growth trajectory, driven by manufacturers' price reductions to meet sales targets stipulated under the government's Zero Emissions Vehicle (ZEV) Mandate.

In alignment with its Green, Social & Sustainability Financing Framework, NatWest's latest bond issuance underscores its commitment to environmental sustainability. Since the framework's inception in 2019, the bank has launched three social and green bonds, amassing a total principal amount of £3.9 billion.

NatWest Group has pledged to provide a detailed report on how the proceeds from the EV Green Bond are allocated, including an estimate of the CO2 emissions avoided within a year of the bond's issuance.