Building society homes in on £ 3m thanks to share issue
SUSTAINABLE lender Ecology Building Society has secured £ 3m of investment through an issue of core capital deferred shares ( CCDS).
The share issue will enable the society to expand its sustainable lending, invest in innovation, and drive its mission to improve the environment by supporting and promoting ecological building practices and sustainable communities.
The society said it has led the way on the development of sustainable finance and is a leading green mortgage provider for energyefficient self- build and renovations. It said its 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 the society support a 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.
Ecology is the third, and smallest, building society to have raised new funds through CCDS, alongside Nationwide, which has to date issued over £ 1bn in CCDS, and Cambridge Building Society, which placed £ 15m privately with its local county council pension fund.
Ecology chief executive Paul Ellis said: “I’m delighted that Ecology has secured this investment which marks the beginning of an exciting new era in the building society’s history, underpinning our growth prospects and strengthening our commitment to sustainability and ecological lending.
“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.
“The additional capital will accelerate our lending, ensuring we’re well placed to support the green recovery.”
The structure of the investment preserves Ecology’s status as a member- owned, mutual organisation as each shareholder has only one vote regardless of how many shares they hold.”
Charity funding specialist Allia C& C acted as manager for the Ecology offer, and Allia placed the CCDS through its network of investors.