Fexco joins energy efficiency loan scheme with €10m investment

Fexco Asset Finance has invested €10 million in the sustainable loan initiative being overseen by Strategic Banking Corporation of Ireland’s (SBCI), becoming the latest financial services provider to collaborate with the State-backed lender on the scheme aimed at helping businesses to cut their energy costs and reduce their carbon emissions.

Eligible SMEs, farmers and fishers can apply to the Killorglin, Co Kerry-based group from Monday for finance under the energy efficiency loan scheme.

Fexco will provide loans of between €10,000 to €150,000 at reduced rates of interest and with repayment terms of up to 10 years. The loans can then be used to finance a range of approved energy efficiency upgrades, including EV charging points, the installation of solar panels as well as heating and cooling systems among others.

Hire purchase

Launched last July by SBCI, the State-backed lender, Bank of Ireland, AIB and business lender CapitalFlow have already signed up to the scheme, offering credit through a range of products including hire purchase and asset finance as well as term loans.

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Fexco Asset Finance chief executive Michael O’Halloran said its involvement in the scheme is “a milestone in our ongoing collaboration with SBCI”. The two entities have previously collaborated on initiatives including a scheme to allow SMEs borrow at a lower cost for specialist equipment and vehicles under SBCI’s leasing and hire purchase scheme.

Mr O’Halloran said the arrangement with SBCI also aligns with Fexco’s own sustainability and renewable energy ambitions.

“We want to play a much bigger role and become a leader in the global green economy,” he said. “The SME sector remains a vital element to our economy and will play a crucial role in helping the country achieve its climate goals.”

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Minister for Finance Michael McGrath welcomed Fexco’s decision to join the scheme as an on-lending partner. Against the backdrop of soaring energy prices, Mr McGrath said the loan scheme can help businesses “enhance their competitiveness” and reduce costs.

“I urge businesses to continue to avail of investment opportunities that this scheme creates,” he said.

Aviation sector

Last year, the financial services group launched its Pace (Platform for Analysing Carbon Emissions) system, a new platform that analyses carbon emissions in the aviation sector, enabling airlines and investors in the sector to manage their emissions.

The platform uses publicly available data to track aircraft, with machine learning and artificial intelligence to assess carbon emissions and predict future aircraft utilisation. Accurate data on carbon emissions can be calculated by airline, aircraft, flight and even down to the individual seat per flight.

Pace is a joint venture between Fexco, and Avocet Risk Management, and forms part of Fexco’s broader strategy in the sustainability sector.