Raising the bar - the Climate Change Bonds
Triodos Bank reissues its Climate Change Bonds with a higher upper limit
- New range of Climate Change Bonds available from 1 September paying from 2.0% AER* for two years
- Minimum £500 deposit, maximum £1million
- Interest paid monthly or annually
The bond issues reflect consumers' growing appetite for ethical and sustainable banking and savers' increasing desire to know that their money is actively working for positive environmental change. Savers' deposits will be used exclusively to finance organisations actively working against the causes of climate change such as Ecotricity, the Wern Ddu wind farm and the Isle of Eigg Heritage Trust.
Savers can choose from three fixed term bonds:
- Triodos Climate Change - Two Year Bond paying 2.00% AER/gross for two years
- Triodos Climate Change - Three Year Bond paying 2.75% AER/gross for three years
- Triodos Climate Change - Five Year Bond paying 3.25% AER/gross for five years
The bonds are available to all customers who can apply online at www.triodos.co.uk or over the telephone by calling 0800 328 2181.
Jayne Clarke, Triodos' savings spokesperson, said: "More and more people are tiring of the big banks' continued disregard for social or environmental and concerns. As a result, the nation is becoming increasingly aware about the possibilities of actively using their money to support positive change rather than simply pursuing the highest interest rate possible.
"And, although the recession means that many people may be continuing to struggle financially, there are some who still wish to save for their future and the future of our planet. With our Climate Change Bond savers can be assured that their money is only being used to help organisations that share their principles of fighting climate change and building a sustainable future."
In keeping with its philosophy for transparent banking, Triodos is keen to ensure customers that invest in a Climate Change Bond understand exactly how their money is being used so it publishes details of all the businesses to which it lends on the website www.knowwhereyourmoneygoes.co.uk .
Triodos also wants to help grow its customers' awareness of exactly how hard their money is working. For instance, saving £2,679 in one of the Climate Change Bonds will help Triodos Bank to finance the creation of enough renewable energy for one average UK home for the next 20 years**. The more customers that save, the greater impact Triodos will have in fighting climate change through the positive use of money. The bank has 37,000 customers in the UK.
A shining example
One of the projects benefitting from Triodos' Climate Change Bond customers' savings is Worthy Farm, the venue for the Glastonbury festival. In July this year the farm's owner, Michael Eavis, secured £500,000 from Triodos to help install the UK's largest privately-owned solar array on the roof of the farm's cow barn.
When operating at full capacity the 1,100 solar panels will generate more than 200kW of power - enough energy to power around 40 houses. Triodos finances 84 other solar projects internationally.
The first half of 2010 saw Triodos grow its lending to businesses in the environmental sector by 23 per cent to £90million and its total lending and commitments to this sector now stands at more than £150million. With almost a third of all Triodos Bank's UK loans going to the environment sector it expects to continue growing lending to businesses fighting climate change throughout the rest of 2010 and in the future.
Triodos Reward Bond
Triodos is also launching today its Reward Bond for existing savers whose funds with the bank are coming to maturity. This is the first time it has offered exclusive interest rates for savers who wish to reinvest their funds with the Bank. The Triodos Reward Bond will pay 3.0% AER/gross for three years. Interested customers have been written to and can contact the Bank for more information or for an application form via any of the usual channels.
For more information, comment or a case study, please contact:
Lisa Stanley, head of communications, on 0117 980 9721 / 07983 002 013 or email firstname.lastname@example.org
* Rates correct as of 1 September 2010. Interest rate quoted is Annual Equivalent Rate (AER) and illustrates what the interest rate would be if interest was paid and compounded once each year. The gross rate is before deduction of tax at standard rate.The minimum deposit for the Climate Change Bond is £500 and the maximum is £1,000,000. They are restricted to one account per person, per fixed term. Interest can be paid annually or monthly.
**Figure of £2,679 derived from average build cost of £1.5million per megawatt of onshore wind turbine generation and average of 560 households per megawatt.
About Triodos Bank
Triodos Bank only finances enterprises which create social, environmental or cultural added value. Key sectors include organic food and farming, renewable energy, social housing, and fair trade. Transparency is a core value: customers are informed about the bank's lending and can target their savings to particular areas of investment. A range of personal savings accounts is offered, and full banking services are available for businesses and charities. Triodos Bank is an independent bank founded in the Netherlands in 1980. Its principles and independence are protected through a special shareholding trust. The UK office opened in 1995 and is based in Bristol.
Triodos is a market leader in financing small-medium sized renewable energy projects and currently has lending and commitments in excess of £150m to the environmental sector, with 23% growth in sector lending during the first half of 2010. The main area for growth in 2010 was on-shore wind energy and in-vessel compositing facilities.
By the end of 2009 Triodos Bank, and its climate and energy funds, financed over 275 renewables projects across Europe, including 175 wind farms, 85 solar plants and various small biomass and hydro projects. Triodos currently finances over 1,000 MW of wind and solar power production capacity.
As well as lending, Triodos' investment banking arm together with Triodos Renwables plc has pioneered renewable energy finance, making equity investments in environmental businesses, including Marine Current Turbines in Northern Ireland, the world's first tidal energy plant which has just generated its two millionth unit of power.