Future Super dips toe into peer-to-peer lending for clean energy
Fossil-free superannuation fund Future Super will loan money to Australian borrowers so they can buy clean energy products through an investment deal with peer-to-peer lender RateSetter.
The fund will start with an initial $200,000 investment through RateSetter’s clean energy market to facilitate loans to creditworthy borrowers so they can buy renewable energy products like batteries and solar panels.
Peer-to-peer lending platforms like RateSetter, headed by Daniel Foggo, connect investors with borrowers, exposing lenders to a portfolio of unsecured loans with repayments typically made monthly.
RateSetter is a UK operation with an Australian arm which has processed more than $500 million in loans since its launch in 2014 with RateSetter processing $6 billion worth of loans globally.
The Clean Energy Finance Corporation was an early investor in RateSetter’s clean energy scheme, which offers loans to individuals and businesses on seven year terms so they can buy clean energy products.
In 2018 RateSetter signed a $100 million deal with the Clean Energy Finance Corporation to lend funds to South Australians to invest in batteries and cover the up-front costs of installations not already covered by South Australian government subsidies.
Future Super said its involvement is the first time a retail super fund has been involved in peer-to-peer lending.
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