Westpac Launches New Energy Efficient Lease
14 February 2012
Westpac Institutional Bank today announced it has launched an Energy Efficient Lease (“EEL”) that makes it easier and more cost effective for large firms to reduce their carbon emissions and cut energy costs.
Westpac’s Global Head of Corporate & Institutional Banking, Jeff Mitchell, said “We are focused on developing real life, practical products that help our customers transition to a carbon constrained operating environment”.
“The EEL is an easy to understand solution that will help customers reduce carbon emissions and energy costs,” Mr Mitchell said. “It is an important part of the suite of products and services Westpac is developing to help our customers respond to emerging risks and commercial opportunities around carbon and energy,” he said.
Australia’s energy use is rising rapidly with demand forecast to grow by 14% over the next decade. The use of energy efficient assets will become increasingly important to minimise energy consumption and contain costs. The potential for savings are significant. For example, a major retrofit of Australia’s commercial buildings over the next decade could save $1.4 billion a year and cut building emissions by 30%1.
Westpac’s Head of Portfolio Asset Finance, Debt Capital Markets, Peter Deutsch, said: “This is an innovative offering that applies the standard features of a lease to energy efficient assets. The EEL includes advice on the most energy efficient assets to meet the future needs of a business, 100% funding for the purchase as well as long-term management and maintenance of the asset. This makes it more practical and financially beneficial for Westpac’s larger clients to implement carbon friendly projects”.
Eligible assets under the program include energy efficient building management equipment, renewable assets, computer hardware, medical devices, cooling, heating and air conditioning systems and LED and lighting assets.
The new lease products also targets government and other large energy consumers such as schools and hospitals.
WIB has a dedicated team of carbon specialists. This team brings together expertise from across the business to focus on delivering integrated carbon solutions for our customers. This includes debt and equity funding for emerging business opportunities in the domestic offset sector (forestry and agriculture), clean energy opportunities, energy efficiency, internal abatement financing requirements and carbon credit off-take, price risk management or origination activities.
About Westpac Institutional Bank
Westpac Institutional Bank (WIB) delivers a broad range of financial services to commercial, corporate, institutional and government customers with connections to Australia and New Zealand.
WIB operates through dedicated industry relationship and specialist product teams with expert knowledge in transactional banking, financial and debt capital markets, specialised capital, and alternative investment solutions.
Customers are supported through Westpac branches and subsidiaries located in Australia, New Zealand, United States, United Kingdom and Asia.
1Energy Efficiency Council Report 2010 ‘Energy Efficiency – Australia’s Low Carbon Opportunity’.