Ecology will use the fund to promote ecological building practices and green lending
Ecology Building Society has secured a £3 million investment to enable it to grow sustainable lending and drive innovations which will support its mission to improve the environment.
The investment was obtained through an issue of Core Capital Deferred Shares (CCDS), a type of capital raising instrument used by mutuals.
Nationwide has issued over £1 billion of CCDS to raise new funds to date and Cambridge Building Society has placed £15 million privately with its local county council pension fund using the instrument.
Ecology will become the third and smallest building society to use this form of funding, which it is using to promote ecological building practices and sustainable communities as well as green lending.
Paul Ellis, chief executive of Ecology, said: This investment marks the beginning of an exciting new era in the Society’s history, underpinning our growth prospects and strengthening our commitment to sustainability and ecological lending.
He said, this demonstrates confidence in Ecology’s values-based and purpose-driven model.
The effects of the climate and ecological crisis continue to be felt both here in the UK and across the globe, and it has never been more relevant and important for Ecology to continue to provide a progressive force for positive environmental change, Ellis said.
The additional capital will accelerate our lending, ensuring we’re well placed to support the green recovery, he said.
As well as being a green mortgage provider for energy efficient self-build and renovations, Ecology is well known for its development of sustainable finance.
Ecology’s C-Change mortgage discounts incentivise energy efficiency through mortgage pricing, based on the property’s energy rating when the project is completed.
The investment will help further build the Society’s capacity to support the sustainable recovery and complement initiatives such as the imminent launch of the government’s Green Homes Grants scheme, which will help homeowners cover the cost of making energy efficiency home improvements.
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