Addleshaw Goddard advises on award-winning sustainability-linked financing for Rural Asset Finance
Addleshaw Goddard (AG) is pleased to announce that it has advised NatWest on a landmark sustainability-linked financing which has been named Sustainability-Linked Loan of the Year (Other) at the Environmental Finance Sustainable Debt Awards 2026.
The transaction, delivered for specialist lender Rural Asset Finance, represents a first-of-its-kind structure between NatWest, BCI Capital and the British Business Bank, designed to support sustainable investment across the UK’s farming and rural business sectors.
The financing comprises approximately up to £120 million of debt funding provided by NatWest alongside BCI Capital, and NatWest’s funding is supported by a guarantee from the British Business Bank under its ENABLE Guarantee programme.
The innovative structure introduces a dynamic loan margin linked to the borrower’s performance against clearly defined sustainability key performance indicators (KPIs). These include the expansion of renewable energy installations on farms, as well as the adoption of sustainable land, water and environmental management practices.
Crucially, the facility aligns with the UK Government’s Sustainable Farming Initiative, enabling Rural Asset Finance to incentivise and support farmers in transitioning to more sustainable and environmentally responsible practices.
This award-winning transaction underscores AG’s strength in structured finance and its continued commitment to supporting clients on complex, sustainability-driven financings that deliver real-world impact.
Lee Shankland-Gort partner Head of ESG Firmwide and Head of Social and Affordable Housing Group:
“By linking pricing to sustainability outcomes, the facility creates a direct incentive for farmers and rural businesses to invest in greener practices, while also delivering a robust and scalable financing solution for our client.”
Zoe Connor Partner, Finance - Structured Finance and Securitisation & Funds Finance:
“We are proud to have supported NatWest on this first-of-its-kind financing. The structure not only provides critical funding to the rural economy but also aligns closely with national sustainability objectives. It is a clear example of how the financial sector can play a leading role in supporting the transition to a more sustainable agricultural system.”
The Addleshaw Goddard team was led by its Structured Finance and Securitisation practice, with key contributions from Zoe Connor, Fiona Luong, Julia Barette, Li Tang and Helen Stephen, alongside Ryan Gilmore from the firm’s Asset Finance team.
