Triodos debuts new climate change bonds

Green banking specialist Triodos this weekend launched a new range of climate change bonds designed to offer consumers the chance to easily invest their savings in low carbon projects.

The two-, three- and five-year bonds will offer rates of interest of between 2 and 3.25 per cent, and the company is expecting to see considerable take-up of the new products from green consumers.

"The rates of interest are not the highest in the market, but nor are they near the bottom," said Dr Bevis Watts, head of business banking at Triodos. "It is a fair midmarket return and it is offering savers the chance to make a positive difference through their bank at a time when everyone is disillusioned through the sector."

The launch is the latest step in an expansion drive for the bank that saw the amount of financing it provided to low carbon projects increase 20 per cent during 2009 to nearly £250m.

"A lot of the markets we support, such as renewables and recycling, are growing very fast, and on top of that the other banks aren't lending, so we are seeing huge demand," explained Watts, adding that the company also has over £150m of investment already committed for next year.

He said that no limit had been imposed on the number of bonds that would be issued, but admitted that the company was hoping to raise tens of millions of pounds through the new products.

Alongside the new bonds, another area being targeted by the company is the business banking sector, where Watts is aiming to convince growing numbers of clean tech and green firms to bank with Triodos.

"It does amaze me that there is not a greater connection made between green businesses and where their money is subsequently invested by their bank," he said. "It makes sense for them to be banking with a bank that shares their values and is not investing in the kind of projects that actually make their day-to-day work harder."