NatWest has successfully issued its first electric vehicle (EV) green bond, raising net proceeds of €750m (£631.5m) from institutional investors.

The move makes NatWest the first UK bank to issue a green bond where the use of proceeds are intended to exclusively finance or refinance EVs.

NatWest said the financing that the green bond is intended to support will originate from the banking group’s asset finance arm, Lombard.

Lombard is the UK’s largest asset financier based on net lending volume and last year provided UK businesses with over £2.3bn of climate and sustainable funding for sustainable transport.

Head of climate transition for Lombard, Stuart Clark, 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.”

NatWest also revealed it intends to report on the allocation of the proceeds of the EV green bond and provide an estimate of the resulting carbon dioxide emissions avoided, within 12 months of the issuance date.

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