Business lender Capitalflow Group is to lend €10m to SMEs for investment in energy efficiency projects, helping them move to sustainable energy and contribute to halving Ireland’s greenhouse gas emissions by 2030.
The fund comes from the new low-cost Energy Efficiency Loan Scheme created by the Strategic Banking Corporation of Ireland, and businesses can apply for loans up to 31 December of next year. The full EELS facility amounts to €150m.
Capitalflow said that research from the European Investment Bank indicates that Irish SMEs invest a mere 6% of their budget in energy efficiency, one of the lowest in Europe, and that the lack of competitive funding until now has been a major roadblock for the SME sector’s transition to a low carbon economy.
Chief executive June Butler said: “I welcome the addition of Capitalflow as a partner for the SBCI Energy Efficiency Loan Scheme. Capitalflow’s participation will assist SMEs and farmers in accessing low-cost flexible finance for investment in energy efficient equipment as they respond to the ongoing increase of energy costs.
“This is our first dedicated climate action-related product and has been specifically designed to help Irish businesses to improve their sustainability, cut their energy bills and reduce their carbon emissions by investing in energy-saving measures.”
In Association with
Established in 2016 and led by Ronan Horgan, Capitalflow says that it provides flexible finance options through its digital platform to companies looking to grow and scale their business. Based in Dublin, with offices in Santry and on Baggot Street, the company employs 80 decision-makers and has advanced €800m to SMEs in all sectors since then.
Last year, it was acquired by Dutch digital bank bunq, founded in 2012 by serial entrepreneur Ali Niknam, who initially financed the enterprise from his own wealth and by 2021 had more than €1 billion in deposits, having doubled deposits both in 2019 and 2020.
In July 2021 bunq raised €193m in a Series A financing round in a deal with British private equity firm Pollen Street Capital, valuing bunq at approximately €1.6 billion, and at the same time reported its first-ever profitable month. As part of the deal, bunq acquired Capitalflow.
Both companies say they are committed to reducing their carbon footprint, with bunq firmly on track to become a climate neutral bank. Earlier this year, bunq introduced an Irish IBAN, allowing locals access to its services and products, claiming quick sign-up and a transparent fee structure.
