NatWest Group — formerly called Royal Bank of Scotland — said it has issued its first Electric Vehicle 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-finance electric vehicles,” said NatWest.

“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.

“In 2023, Lombard provided UK business with over £2.3bn of climate and sustainable funding for sustainable transport.”

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.”

NatWest said that in 2019, the bank developed its Green, Social & Sustainability Financing Framework (GSS Framework).

Since launching the GSS Framework, up to December 31, 2023, NatWest Group said it has issued three social bonds and three green bonds with a combined aggregate principal amount at issuance of £3.9 billion.