Virgin Money support multi million sustainability measures

Virgin Money is pleased to announce that it has signed a new three-year agreement with Foresight Sustainable Forestry Company Plc (“FSF” or “the Fund”), under which it has provided a committed Revolving Credit Facility (“RCF”) of £30m and an uncommitted accordion facility of up to an additional £30m.

FSF is an LSE-listed company which invests in forestry (both existing and afforestation) and is committed to meeting the highest sustainability standards. It was awarded the Green Economy Mark by the London Stock Exchange at IPO and, like the Bank, is aligned with the UN’s Sustainable Development Goals.

The transaction both directly and measurably supports key components of Virgin Money’s Environmental Social and Governance (ESG) strategy which include working with customers and communities to create shared prosperity, having 10 per cent of business lending balances to Sustainability Changemakers by FY27, and supporting the transition to a low carbon economy by reducing financed emissions.

Giving further background, Keith Wilson, head of energy & environment at Virgin Money said: “This transaction represents an important milestone in the development of our business. With an established energy lending product offering and an ambitious ESG strategy, we are increasingly focussed on growth through diversification.

“Sustainable forestry has the potential to make a significant contribution to Net Zero and I am extremely pleased we have been bold and made an early move into this market”.

Richard Kelly and Rob Guest, co-heads of foresight sustainable forestry company, commented: “We are delighted that the RCF funding can be deployed into our exciting pipeline of forestry and afforestation assets, further enhancing the growing impact of FSF and the contribution we are able to make in the twin fights against climate change and biodiversity loss.”

Richard Davidson, chairman of foresight sustainable forestry company, also commented: “The Company is very pleased to be working with Virgin Money and are proud that the interest margin is aligned to S & ESG targets which form a core part of FSF’s investment strategy”.

The interest margin chargeable on the RCF is linked to Sustainability and ESG (S & ESG) performance, with FSF incurring a premium or discount to its margin based on its performance against defined targets.

Performance against these targets will be measured annually, with the interest cost of the RCF being amended accordingly in the following year.

This latest deal with FSF further evidences Virgin Money’s reputation and commitment to carbon reduction lending. A number of targeted new lending projects are on the horizon, and its wider portfolio includes assets across solar, onshore wind, biomass and hydro-electric power.

By Mark Adair – Correspondent, Bdaily

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