The Royal Bank of Scotland (RBS) has launched a “social bond” aimed at boosting lending within deprived areas of the UK.
The banking giant announced this morning that the bond would be linked to roughly £2.5bn of lending to small firms in disadvantaged areas.
An impact report measuring jobs created and retained as a result of this lending will be published for investors at least annually, the group said.
Newly-appointed chief executive Alison Rose said: “RBS is the biggest supporter of UK business. This Social Bond further demonstrates our commitment to addressing regional inequality and promoting economic growth by supporting businesses to create and retain jobs in some of the UK’s most deprived areas.
She added: “This is an important milestone for RBS as we build a more sustainable, purpose-led bank that champions the communities we serve and helps them to thrive.”
Rose formally took over as boss of the state-backed lender last week, after the firm reported its latest quarterly results in which it swung to a loss following costs totalling £900m from the payment protection insurance (PPI) scandal.
RBS is set to announce pricing and how much it intended to raise from the bond later this afternoon.