P2P lender launches green loan marketplace

by Miklos Bolza29 May 2017
Peer-to-peer lender RateSetter has partnered with the Clean Energy Finance Corporate (CEFC) to launch a new green loan marketplace.

Receiving a $20m kickstart from the CEFC, the marketplace is aimed at individuals and business borrowers seeking to finance the purchase of approved energy efficient products and incentivise the uptake of clean energy technology.

Retail investors will also be able to utilise the marketplace and earn attractive returns while improving Australia’s energy footprint.

“This innovative facility offers the potential to improve the marketability of green assets, by bringing purchasers, installers, and manufacturers closer together. There have been green loans before, and there has been peer-to-peer lending, but combining the two into one platform is an Australian first,” said CEFC CEO Ian Learmonth.

Daniel Foggo, CEO of RateSetter said the partnership showcases exciting opportunities for businesses and consumers when government agencies team up with the fintech sector.

“We are delighted to have the CEFC’s financial involvement to develop this initiative to support the uptake of clean energy in the home, on the road and in the running of Australian businesses,” he said.

Rates for investors and borrowers within the green marketplace are expected to be around 7% per annum with loan terms mainly falling between three and seven years.

“RateSetter green loans provide brokers with a new way to help their clients save money through the installation of clean energy products including solar panel and battery systems, solar water systems and energy efficient air-conditioning. RateSetter green loans are available to accredited RateSetter brokers from today,” Foggo told Australian Broker.

Investment in this transaction could pave the way for future rollouts of similar green platforms, CEFC debt markets lead Richard Lovell said.

Growth in green funding has exploded over recent years with the recent Global Sustainable Investment Review reporting that the total amount of money in funds with green or social investment principles increased from $US148bn to $UD516bn in Australia and New Zealand between 2014 and 2016.

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