Investors can now back green projects tax-free through a new Innovative Finance ISA (IFISA).
Cyan Finance backs environmentally friendly-focused business projects and has launched a Sustainable Bond that can be held within a tax wrapper.
The company is offering returns of 3.5 per cent each year for a minimum investment of £100 on the three-year bond.
Investments in the Cyan Sustainable Bond will be used to support and expand the business, building the team and allowing them to increase the number of sustainable businesses that they are able to support.
Read more: Assetz eyes £100m in new IFISA money
Cyan Finance is also an accredited lender under the coronavirus business interruption loan scheme and has previously funded businesses that put solar-powered buses in Brighton and biodegradable plastic-free packaging producers.
Sophie Burgis, a spokesperson for Cyan, said the IFISA can help investors take part in the green banking revolution.
“We can now choose plastic-free packaging, opt for pesticide-free produce or take an electric bus to work,” she said.
“However, there has been less attention paid to how our finances could help address the climate emergency. So many people don’t realise that their savings, or even money sitting in their current accounts, might be used by their banks to invest in companies that are damaging the planet.
“Together, we can bring about real change. Change that is desperately needed to shift money away from destructive investments and to redirect it as a force for good.”
The bond does come with added risks though as returns aren’t guaranteed and there is no Financial Services Compensation Scheme protection if Cyan Finance closes.
The offer is a financial promotion authorised by white label crowdfunding software provider ShareIn.
ShareIn is authorised and regulated by the Financial Conduct Authority and it is under ShareIn’s regulatory status that the offer is being issued.
Read more: How to invest in an IFISA for £100 or less