Triodos Bank UK launches capital raising bond to support growth plans

Triodos Bank UK Ltd has launched a capital raising bond to raise tier 2 regulatory capital. The Triodos Bank 2020 Bond issue will help to support its ambition to grow lending in the UK in the coming years, with an emphasis on supporting sustainability and social impact focused organisations through Covid-19 and beyond, whilst maintaining UK regulatory capital requirements.

Triodos Bank UK became a wholly owned subsidiary of Triodos Bank N.V. in 2019, prompted by the UK’s withdrawal from the European Union. Significant regulatory capital contributions from Triodos Bank N.V.  have met regulatory capital needs to date and these will continue in the future. Triodos Bank policy is always to manage activities to comply with all regulatory capital requirements and to maintain a strong capital base in order to preserve investor, creditor and market confidence and to sustain the future development of the business.

Gary Page, chairman of Triodos Bank UK Ltd, said:“I’m incredibly proud to chair a bank with an unwavering commitment to promoting responsible banking; one that exists to fund organisations that, at their core, deliver positive and transformational societal and environmental benefit. In our 25 years in the UK, we have scaled our impact and delivered a track record of profitable growth. Now an important part of our strategic growth plans includes raising capital to support us in continuing to grow our lending in the coming years, whilst maintaining regulatory capital requirements.”

The bond is available on the Triodos Crowdfunding platform. It has a 10-year term (with Triodos having discretion to repay the bond in full after 5 years) and will pay 4% gross per year. As with all investments, interest payments and return of capital are not guaranteed. There is a £100 minimum investment and it is eligible to be held in a Triodos Innovative Finance ISA (IFISA) that allows interest to be received tax-free. ISA eligibility does not guarantee returns or protect consumers from losing their money.

Triodos Bank UK currently has over 66,000 customers and more than £1.2bn of funds entrusted from savers and depositors. This year Triodos celebrate 25 years in the UK, delivering the bank’s mission to create a society that protects and promotes quality of life and human dignity for all.  

Triodos has included the United Nation’s Sustainable Development Goals (SDGs) in its reporting since 2016, mapping what it does in support of these goals. Triodos maps where it is already, or can be in the future, playing a catalyst role in helping to stimulate the lasting systemic change that the goals demand.

Visit the bank’s crowdfunding website for more information on the Triodos Bank UK 2020 bond offer.

Important information

Investments offered on the Triodos crowdfunding platform are not readily realisable, which means that they may be difficult to sell, and you may not get back the full amount invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and your capital is at risk and returns are not guaranteed. Repayment of capital and interest will be dependent on the success of the organisation’s business model and past performance isn’t a reliable indicator of future performance. You should always read the offer document in full before deciding whether to invest as it will cover risks specific to an individual investment. You can read more about the general risks associated with making these types of investments here. If you are unsure if any of these investments are right for you, you should contact an Independent Financial Adviser.

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