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Image Credit: Virgin Money
Virgin Money has forged a new financing partnership with Gresham House, a leading alternative asset manager, marking its largest transaction in the renewable energy sector. This collaboration will provide Gresham House Solar Distribution LLP (GHSD) with a £18 million revolving credit facility structured flexibly to support the expansion of its solar energy assets.
Aligned with Virgin Money’s ambitious strategy to halve the carbon footprint of all financed projects by 2030, this move also represents a critical step toward the bank’s goal of achieving at least 5% of its loan book in sustainable lending by FY22.
The Gresham House alternative investment fund has already raised over £49 million from investors and owns eight operational ground-mounted solar parks across England and Wales. With a combined capacity of 48MW, these sites generate over 45GWh annually—enough to power more than 12,500 homes and cut CO2 emissions by over 20,000 tonnes each year.
This structured facility from Virgin Money offers a robust, adaptable financing solution, enabling Gresham House to expand its solar portfolio further. Known for its New Energy team’s expertise in onshore wind, solar PV, and energy storage, Gresham House Asset Management focuses on investments that promise solid returns and support the global transition to a more sustainable economy. This partnership cements Virgin Money’s commitment to renewable financing and strengthens its standing in sustainable lending, supporting both environmental goals and economic growth.
Commenting on the deal, Wayne Cranstone, investment director at Gresham House, said: “This partnership with Virgin Money comes at a crucial time, as the UK ramps up efforts to meet its 2050 net-zero target. As host of the COP26 summit later this year, the country’s renewables capabilities will be firmly in the spotlight, and by expanding our solar operations, we hope to meaningfully contribute to the UK’s decarbonisation. By propelling us to the next stage of growth, this deal will further strengthen the fund’s attractive income proposition for investors.”
Keith Wilson, head of renewables at Virgin Money, said: “This transaction is among the bank’s most notable contract in the renewable energy sector to date. Working in partnership with Gresham House, we have delivered a bespoke and innovative funding solution, which both supports their strategic objectives and recognises their experience and reputation in the marketplace. In addition, the transaction directly supports our recently refreshed ESG strategy and the continued growth of our renewable energy lending book.”
Virgin Money’s commitment to renewables is underscored by its £150 million investment in renewable energy lending, covering diverse projects from hydroelectric power to wind farms. With additional targeted lending initiatives in the pipeline, the bank is swiftly advancing its strategic growth goals in green financing. Virgin Money will integrate green products and funding solutions while addressing residual carbon emissions across its portfolio. The bank has already begun collaborating with customers, employees, and industry forums to drive sustainable strategies and accelerate its plans for impactful change in the sector.
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