AIB, Ireland’s leading financial services provider, has selected Foresight Group, a specialist in SME and sustainable infrastructure investment, to manage a new equity fund aimed at raising €75 million. This fund is designed to assist businesses that are driving Ireland’s transition to a low-carbon economy.
AIB has committed €30 million to the impact fund, which is intended to foster job creation and support small and medium-sized enterprises (SMEs) in their efforts towards environmental sustainability. Initially, the fund aims to make equity investments ranging from €2 million to €5 million, with the flexibility to adjust investment sizes as needed.
Cathy Bryce, AIB’s Managing Director of Capital Markets, stated, “As Ireland’s largest financial services provider with a customer base of 2.8 million, AIB is dedicated to facilitating a shift towards a low-carbon economy. We aim to reduce our own carbon footprint while assisting our customers in achieving the same goal.”
Bryce further emphasized, “Our target is for green and transitional lending to represent 70% of our new lending by 2030. In addition to lending, we recognize the critical role equity investment must play in supporting the green enterprises of tomorrow. We are excited to partner with Foresight, whose strong commitment to environmental, social, and governance principles will be invaluable for ambitious small businesses making strides in Ireland’s low-carbon transition.”
James Livingston, a partner at Foresight, expressed enthusiasm for the collaboration, highlighting plans to establish a Dublin office dedicated to supporting Irish SMEs in their decarbonization initiatives. “Energy generation is just the beginning of the low-carbon transition; we need to rethink our lifestyle choices, including our work habits, consumption patterns, and travel methods.”
Foresight aims to invest across a broad spectrum of the low-carbon agenda, focusing on initiatives that promote a circular economy and advanced technologies that facilitate smart cities.
Subject to regulatory approvals, the AIB Foresight SME Impact Fund is expected to achieve its first close soon and will be accessible to companies in both the Republic of Ireland and Northern Ireland. The fund anticipates contributing to job creation and fostering robust, sustainable economic growth.