Government invests $20m in P2P RateSetter’s green lending initiative
This is the first investment by an Australian government body through an Australian peer-to-peer lending platform.
Australian peer-to-peer (P2P) lender RateSetter has today announced the launch of a Green Loan lending market which will allow investors to fund the purchase and/or installation of clean energy products.
The Clean Energy Finance Corporation (CEFC), an Australian government body, has invested $20 million in the market to help kickstart the project.
CEO of RateSetter Daniel Foggo said the company was "delighted" to have the support of a government agency.
“There is also a nice symmetry to this support from the CEFC, as it was at a similar stage of its evolution that the RateSetter Group in the UK benefited from its government investing via its platform to help support SMEs grow their businesses.”
Green loans will be available to both individuals and businesses and have an indicative term of seven years. "Green" purposes include installing solar panels and battery systems, energy efficient lighting or purchasing low emission cars and trucks.
In an announcement on its blog, RateSetter said the company believes providing affordable finance for clean energy finance will incentivise the uptake of clean energy technologies.
Foggo added that there are benefits for investors that can invest directly in clean energy products.
"We’re excited to be providing investors with exposure to a hard-to-access asset class that delivers strong, stable returns, whilst supporting the environment."