CEFC commits $20 million to Australian first peer to peer green lending platform
26 May, 2017
Australia's first peer-to-peer green lending platform, RateSetter's Green Loan marketplace, has been brought to life with a $20 million investment commitment from the Clean Energy Finance Corporation (CEFC).
The innovative online platform brings together investors, borrowers and clean energy product providers who have a shared interest in low emissions, energy efficiency and renewable energy projects.
It will allow investors to lend directly to creditworthy borrowers looking to buy or install an approved "green" product. Through the online platform, investors can nominate the amount they wish to invest, the interest rate they are prepared to accept, and their request can then be matched to approved borrowers. Borrowers can access finance to invest in eligible clean energy assets.
CEFC CEO Ian Learmonth said: "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."
Eligible assets include:
- Solar and storage equipment - such as solar panels and inverters for rooftop installation, solar thermal, including solar hot water and batteries that form part of a solar installation
- Energy efficient and low emission equipment - such as power factor correction, voltage optimisation, LED lighting, heating, ventilation and air conditioning.
RateSetter CEO Daniel Foggo said the innovative investment showcases exciting opportunities for both businesses and consumers.
"We are delighted to have the support of the CEFC to develop this initiative to support the uptake of clean energy in the home, on the road and in the running of Australian businesses," Mr Foggo said.
CEFC Debt Markets lead Richard Lovell said the CEFC's investment in the new lending platform had two core objectives.
"Firstly, the financing provided by the CEFC to this innovative new platform will increase the flow of finance into the clean energy sector through RateSetter's retail lender base, which will now have access to borrowers via the peer-to-peer loan product," Mr Lovell said.
"Secondly, the CEFC investment is intended to be a catalyst to encourage borrowers to increase their investment in clean energy projects, reducing their energy consumption and also lowering their carbon emissions."
Mr Lovell added: "The facility will create a real opportunity for retail investors to have access to a regulated 'green loan' product for the first time in the Australian market. Investment in this transaction could establish a successful precedent to pave the way for a rollout of similar 'green' platforms."
RateSetter is a peer-to-peer lender which connects investors with creditworthy borrowers. RateSetter was established in Australia in 2012 and launched to the Australian public in 2014. It is locally owned and managed, and is backed by the RateSetter group, Carsales Limited, Stratton Finance as well as other investors. RateSetter is regulated by ASIC, and holds an Australian financial service licence (number 449176) as well as an Australian credit licence (number 449176). Peer-to-peer lending is not without risk. RateSetter takes its legal and compliance obligations seriously. Please read the Product Disclosure Statement for the RateSetter Lending Platform before deciding to invest. For more information, visit www.ratesetter.com.au.
*RateSetter changed its name to Plenti in August 2020.
Media release, 2017