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NatWest Group has today successfully issued its first Electric Vehicle Green bond (the “EV Green Bond”) raising net proceeds of €750 million from institutional investors based in the UK, Europe & Asia.  The issuance makes NatWest Group the first UK bank to issue a green bond where the use of proceeds are intended to exclusively finance or re-finance1 electric vehicles2.  

The electric vehicle financing the EV Green Bond is intended to support will originate from the banking group’s asset finance arm, Lombard. Lombard, which recently won the accolade of Best Business Motor Finance provider, is the UK’s largest asset financier based on net lending volume.3 In 2023, Lombard provided UK business with over £2.3bn of climate and sustainable funding for sustainable transport.4

Stuart Clark, Head of Climate Transition for Lombard said: 

“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. 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.”

In 2019, the bank developed its Green, Social & Sustainability Financing Framework (the “GSS Framework”). Since launching the GSS Framework, up to 31 December 2023, NatWest Group has issued three social bonds and three green bonds with a combined aggregate principal amount at issuance of £3.9 billion5. The impact of the green bonds for the 12-month period ended 31 December 2023 is an estimated 0.121 million tonnes of CO2e emissions avoided.6   

NatWest Group intends to report on the allocation of the proceeds of the EV Green Bond and provide an estimate of the resulting tailpipe CO2 emissions avoided, based on management information and/or industry data, within 12 months of the date of issuance.7

Notes to Editors:

 

About NatWest Group

NatWest Group is a UK-focused banking organisation, serving over 19 million customers, with business operations stretching across retail, commercial and private banking markets. For estimates of NatWest Group’s emissions (GHG emissions, scopes 1, 2 and scope 3) and further information about the climate impact of our financing activity, including in the passenger road and freight road sectors, please see the NatWest Group’s 2023 Climate-related Disclosure Report available at natwestgroup.com. 

About Lombard

Lombard is the UK’s largest asset finance provider. With a legacy that stretches back over 160 years, today Lombard helps businesses obtain the vehicles, machinery, equipment, technology, marine vessels, and aircraft they need to grow with confidence.

Lombard’s support doesn't end at asset finance. It also assists businesses by connecting them with quality banking services, vehicle funding and fleet management, and specialist technology solutions that help take businesses to the next level.

Electric vehicles account for a small proportion of Lombard’s overall lending book, with diesel and petrol engines continuing to constitute a significant majority of Lombard’s vehicle financing portfolio.

 

  1. The EV Green Bond is intended to finance or refinance Eligible Assets in the form of leases (financial and operating), hire purchase agreements, loans and other arrangements to finance the use and purchase of electric vehicles. The green label of this bond derives from the inclusion of electric vehicles as Eligible Green Assets under the “Clean Transportation” category defined in NatWest’s Green, Social & Sustainability Financing Framework and the ICMA Green Bond Principles “Clean Transportation” category. NatWest is not claiming that this “green” or “clean transportation” categorisation necessarily meets others’ expectations or requirements for describing or classifying activities, products or assets as “green” or transportation as “clean”.
  2. Includes Cars and Light Commercial Vehicles.
  3. Asset Finance UK Top 50, 2024.
  4. For more information on how we define climate and sustainable funding under our CSFF criteria see: Climate and sustainable finance.
  5. Source: gss-bonds-allocation-and-impact-report-2023.pdf (natwestgroup.com) (page 6). There can be no assurance or representation that the allocation of amounts to Eligible Assets will have the result or outcome (whether or not related to environmental, social or other objectives) as originally expected or anticipated by the Issuer (page 27).
  6. NatWest Group reports green bonds have avoided nearly 0.121 million tonnes CO2e | Please refer to Pg 68: NatWest Group plc - 2023 Climate-related Disclosures Report for details of Natwest Group’s published Scope 1, 2 & 3 Financed Emissions and methodology.
  7. Data availability and data quality related to the wider CO2e GHG emissions and whole life cycle/well to wheel emissions can be difficult to obtain, validate, clean and standardise at an individual Vehicle Identification Number (VIN) basis. These methodologies may show different impacts and outcomes. See: https://www.eea.europa.eu/highlights/eea-report-confirms-electric-cars

 

No offer, promotion or advertisement of securities

This press release does not constitute a public offer under any applicable legislation, an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. This press release, and the information included in it, is for information only. This press release is not intended to form part of any offering materials relating to the bonds, be a communication of any offering of, or solicitation of an offer to buy, the bonds, and is not intended to be an advertisement for the purposes of the UK Prospectus Regulation. Investors should not make any investment decisions based on the information included in this press release.

Restriction on US sales

The bonds have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), and, subject to certain exceptions, may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except in transaction exempt from, or not subject to, registration under the US Securities Act.  

The information contained in our press releases is intended solely for journalists and media and should not be used by consumers to make financial decisions. Terms and conditions apply to any products or services mentioned in our press releases

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