Bank of Ireland today (23 February 2009) announced the launch of a significant new €100m fund to support the financing of Irish based renewable energy projects. This is the first in a series of initiatives totalling €200m planned by the Bank that will support environmentally friendly projects which will assist in reducing Ireland’s carbon footprint. Today’s announcement is in line with the Bank’s commitment to Government following the announcement on the recapitalisation of Irish banks.
Bank of Ireland has dedicated Project Finance lending teams in both its Business and Corporate Banking divisions. These teams have extensive experience in the debt funding of renewable energy projects, in Ireland and internationally, and have assembled a renewable energy portfolio of scale including waste management, water and wind farm projects.
The Bank aims to grow its share of the Irish renewable energy market and views this sector as an area of significant potential. The growth in renewables is particularly crucial in the context of Ireland reaching its Kyoto target that 13.2% of national energy consumption is derived from renewable sources by 2010.
Bank of Ireland has now set aside a dedicated fund of €100m which is specifically earmarked for those interested in either expanding an existing project or developing a new project in the renewables sector.
Andrew Cullen, Head of Renewables Finance, Bank of Ireland Business Banking commented: “We are pleased to announce this new fund. We have been committed to continue developing this sector over the last few years. The aim of this fund is to encourage growth in renewable projects in the Irish market place. We currently hold an Irish portfolio of over 150 mega watts and look forward to significantly increasing this over the coming 12 months”.
“Within an Irish context, there is a growing interest in wind energy projects, primarily onshore and we are currently funding wind farms in Cavan, Cork, Donegal, Kerry, Louth, Mayo and Sligo. When operational, these wind farms will have the capacity to produce sufficient electricity needs of approximately 70,000 domestic households”, added Andrew Cullen.
Internationally, the Bank has financed a wide range of renewable energy projects. It is the leading financier in the UK waste management market and has also funded a range of projects across the wind, waste, water and waste water sectors. The Bank’s Corporate Banking division has a team of experienced professionals focused on the renewable energy sector in Dublin, London, New York and Sydney and brings this depth of experience to bear in playing a proactive lead arranging role for project financing transactions in Ireland and internationally.
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Note to Editors :
The Renewable Energy Fund is the fourth in a series of recent funds launched by Bank of Ireland. In 2008 the Bank set aside a total of €230m in stand-alone funds for the private nursing home and medical professionals sectors following reviews of the growth potential of these sectors. It also launched in December 2008 a €250m Business Support Fund to assist with the capital requirements of trading businesses to support their short and medium term financing needs.