Relendex sets green loans goal
Relendex is targeting 60 per cent of its new loans to be for sustainable development by the end of next year.
Paul Sonabend, executive chairman of the peer-to-peer property lending platform, said the company’s green credentials should appeal to retail and institutional investors alike, amid the growing environmental, social and governance (ESG) investing trend.
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“In 2021, 30 per cent of the money we lent went into developments that were sustainable from cradle to grave,” Sonabend told Peer2Peer Finance News.
“To qualify as a ‘green’ loan, every part of the building process has to be seen to be sustainable. We are working with the most innovative housebuilders who are building the most wonderful housing stock that costs little or nothing to light and heat.
“Our goal is for 60 per cent of new loans to be for sustainable development by the end of 2023 and we want the market to know that we are not scared of financing innovative, sustainable buildings using new techniques. We see ourselves as part of a much larger eco-environment in an industry that has not always been green.”
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Sonabend noted that there are many institutions who want to deploy ESG funds but are scared of greenwashing. This is when firms pretend they are doing more to protect the environment than they really are.
“[Our sustainable development loans] should appeal to large numbers of retail investors who are sophisticated enough to qualify to be our lenders,” Sonabend said.
“Our appeal is for institutions who understand they have a bigger purpose in life than just getting a return.”
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