CEFC finances cheaper Metro green loans to lift business energy efficiency
5 July 2024
CEFC finance will help small-to-medium sized businesses (SMEs) improve energy efficiency and reduce emissions via discount loans for a broad range of clean energy technologies offered by independent Australian auto finance lender Metro.
The $50 million CEFC commitment to the $250 million MetroEco green securitisation warehouse, will make it cheaper to finance electric vehicles (EVs), solar PV, batteries, and more efficient farming and building machinery.
MetroEco supports a one per cent discount for eligible customers on Metro’s standard rate, with the CEFC finance backing a 0.5 per cent discount, matched by Metro Finance. For example, eligible customers with a loan of $60,000 for an EV could save some $1,700 in interest expenses over five years.
From those working on the land and in the built environment, to business owners managing shops around Australia, upgrading to best-in-class equipment for EVs, energy efficient tractors, harvesters, earth movers and cranes will help improve energy use and reduce emissions.Ian LearmonthCEFC CEO
CEFC CEO Ian Learmonth said: “Australia’s estimated 2.4 million SMEs account for up to 98 per cent of Australian businesses1, and are in many ways the backbone of our economy. They play a central role in not only providing goods and services we need to live and work but also an integral part of our communities. This investment is about ensuring this dynamic and vital part of our economy can benefit from the clean energy transition, with lower energy use, lower energy costs and a smaller carbon footprint. Every dollar matters for SME operators, and by taking advantage of this discounted finance and investing in a broad range of proven clean energy technologies, they can have better control of their energy use and exposure to energy price fluctuations.
“From those working on the land and in the built environment, to business owners managing shops around Australia, upgrading to best-in-class equipment for EVs, energy efficient tractors, harvesters, earth movers and cranes will help improve energy use and reduce emissions.”
Metro Chief Executive Officer Phillip Crossman said: “We are thrilled to be working with the CEFC for a second time to offer our SME clients this important incentive which will benefit Australia’s small business community, consumers and Australia’s path to emissions reduction.
“We are proud to be one of only a handful of non-bank lenders selected by the CEFC based on specific criteria. This offering demonstrates Metro’s commitment to, and investment in the continued growth and evolution of the clean energy market and green lending in Australia, which is on a growth trajectory.”
CEFC Executive Director Richard Lovell said: “It’s great to be working with Metro again as they continue to lead the sector. The impressive range of renewable energy and energy efficient equipment supported by this initiative has the capacity to improve long-term resilience to energy price fluctuations and help businesses respond to growing consumer demands for greater transparency and sustainability.”
Metro is an independent Australian non-bank lender specialising in auto and equipment finance for businesses, car finance for consumers, and novated leasing. In 2018, the CEFC invested $50 million in its Metro Green initiative to encourage customers to choose lower emissions passenger and light commercial vehicles, helping finance an additional 1,000 low emissions vehicles on Australian roads.
Metro is engaging with clients and accredited brokers to highlight the benefits of choosing electric and energy efficient vehicle and equipment options to drive greater consumer interest and offers more information about EVs, EV charging assets and solar panels to further encourage uptake. Metro will also gather and publish data on emissions profiles and energy performance to drive broader market uptake.
The CEFC has a strong record of investing to encourage consumers to choose best-in-class clean energy assets. Since inception it has worked with key financial institutions to finance some 62,000 discounted green finance loans with a total project value of $2.2 billion.2
About Metro
Established in 2011, Metro is an independent Australian non-bank lender specialising in auto and equipment finance for businesses, car finance for consumers, and novated leasing. Metro lends approximately $1.5-2 billion per year through an Australia-wide network of specialist brokers and salary packagers. Metro's primary goal is to offer customers excellent service, employ innovative technology, and offer competitive rates. In recognition of its performance, Metro received the Financier of the Year, Credit Team of the Year, and Settlement Team of the Year awards from CAFBA in 2022. Visit metrofin.com.au.
1 Australian Banking Association,Small Business Lending Report, 2020
2 CEFC Investment Update, figures to December 31, 2023
