CIBC has announced that it will make up to $150 billion available for environmental and sustainable finance activities by 2027.
CIBC spokesperson Jessica Steinberg, senior director, Capital Markets Communications, told EcoLog News via e-mail that funding will be made available across capital markets, and through corporate and commercial lending and asset management. Eligible business activities will include renewable energy, sustainable infrastructure and technology, sustainable land use and real estate.
“CIBC is already active in environmental and sustainable finance,” says Steinberg. “Achieving our target will require the development and implementation of new and innovative solutions for our clients that help address critical environmental challenges including climate change.”
Cleantech companies are often capital intensive and require long payback periods. Because of that, they often fare poorly when approaching capital markets. A report on cleantech financing, prepared as part of the Globe Capital 2019 conference in Toronto earlier in 2019, found that most cleantech companies do not have sufficient cash flow to qualify for commercial loans. Those that do have difficulty paying them off.
Steinberg says the CIBC Innovation Banking team is dedicated to funding growing companies in the innovation economy, and that support will continue through this new initiative.