• Contact
  • Feedback
Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

Renewable loans hard work for CEFC

03 November 2015 4:47PM
High yielding loans eluded the Clean Energy Finance Corp over the year to 2015, playing a part in the watering down of already low returns from the "green bank".The CEFC put its yield at 6.1 per cent for the year, pointing out that this return "is lower than the figure of seven per cent from the corresponding period last financial year."It put its profit at A$32 million up from $25 million. It had $322 million in loans, up $100 million over a year, and another $600 million in financial assets.Total assets of $1.3 billion are well short of the $3 billion vision promoted when Labor and the Greens set the financier up three years ago.There was "a decrease in the volume of high yielding project finance loans … due to reduced levels of investment in the face of policy uncertainty around the renewable energy target and electricity market conditions of oversupply," it said.Two more factors wore blame for the fall: "an overall compression in interest rates due to declining credit margins and market base rates … [and] an increase in the volume of corporate loans written which achieve a lower projected yield, reflecting their lower risk profile."The Australian government wants to scrap the CEFC but cannot secure the support of the Parliament.In the 2012/13 and 2013/14 financial years, "renewable energy accounted for 63-66 per cent of new CEFC contracted investments by value," the lender said."In 2014/15, renewable energy accounted for only 38 per cent of new contracted investments."The CEFC argues it fosters private sector investment. "Across the CEFC portfolio, for each dollar of CEFC investment, the private sector has invested an average of $1.80. If other government funding is included, such as grants from ARENA, a total of $1.92 in additional funds have been mobilised for every $1 of CEFC investment."

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now

Finance regulation

  • States take up the cudgels on eConveyancing
  • Firstmac failed design and distribution rules
  • 'Minimal' bankruptcy reforms tabled by Dreyfus

Consumer lending

  • Latitude, Harvey Norman liable for interest free GO card con
  • Credit quality dogs Zip turnaround

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use