Triodos boosts Scots loan book as ethical credo pays off

Published on Monday 2 November 2009 21:06

TRIODOS, the social and environmental bank, has seen its Scottish loan book soar by 40 per cent in less than a year as it continues to cash in on businesses' wariness of big names.

The bank, which was founded in Holland in the early 1980s, lends to companies that are either not-for-profit or are "more than profit" – commercial enterprises with a social, environmental or community focus.

It opened its first office outside of its Bristol UK headquarters in Edinburgh about three years ago.

David Cousland, regional manager for Scotland, said the loan book north of the border had grown from about 23.5 million at the end of December 2008 to almost 33m.

That figure now accounts for about 12 per cent of the total UK loan book and the bank is confident it can grow the Scottish book to 40m by the end of next year.

"2010 is going to be our biggest year so far," said Cousland. "We aim to grow the loan book to over 40m next year and there is potential to do more.

"The bank has a simple model – we don't borrow from other banks and don't go to the wholesale market. Part of our challenge now is to get the name better known, to get to a wider public."

Although Triodos has about 2,200 personal savers in Scotland – roughly a 10 per cent slice of the UK total – the focus has been on business customers.

Projects funded by the bank include McSense, a community project set up 11 years ago to help relieve poverty in the former mining communities of Mayfield and Easthouses near Edinburgh, and East Lothian-based "biodynamic" farm East Coast Organics.

More than a third of Triodos's loans have been to small enterprises in the renewable energy sector. South of the Border, the bank has helped fund the refurbishment of Hugh Fearnley-Whittingstall's River Cottage.

Cousland, speaking ahead of National Ethical Investment Week, which starts next Monday, said renewable energy continued to offer "plenty of opportunity" for the bank.

Another area with potential is funding for projects under the communities right-to-buy legislation, Cousland added.

Triodos, which has more than 300 Scottish business customers, to which it either lends or offers accounting facilities, is in the throws of raising 90m (82m) to increase its capital base.

By issuing "depository receipts" – a form of shares – individuals and institutions are able to own a part of the bank. Of that total, about 5m to 6m is destined for the UK.