The fund provides repayable investment finance, predominantly in the form of senior and mezzanine loans, but also with the potential for equity.


The fund can lend to public, private sector or joint venture entities, including Energy Service Companies (ESCOs) and housing associations.


LEEF will finance a broad range of Energy Conservation Measures (ECMs) to provide energy saving benefits. This includes, for example, boiler replacement, campus-based Combined Heat and Power (CHP), insulation and ground source heat pumps.

Download the LEEF ECM Technology List


The fund targets investments of between £3m-£10m (minimum £1m; maximum £20m per borrower). Smaller projects will be considered on a case-by-case basis, but it may be appropriate to group buildings or parts of a project together for financing. Draw-down of funds can be upfront or on a phased basis.


LEEF is a sustainable investor, targeting socio-economic and financial returns on investment. Projects supported by LEEF should aim to deliver Energy Savings (kWh) from the Energy Conservation Measures (ECMs) of at least 20%.


LEEF provides many advantages over other potential sources of finance.

  • There is no set payback period required
  • Maximum loan terms are 10 years, although short-term development finance and longer investment periods may be considered on a case by case basis
  • The pricing of the fund’s loans will be linked to risk and the credit rating of the borrowing entity. The aim is to structure the transaction so that a highly-competitive rate can be offered
  • Projects will be reviewed on an ongoing, rolling basis, with no deadline for applications or ‘funding rounds’
  • The fund may be able to offer flexible terms; for example, the potential to roll-up interest during construction, to allow early repayment and to sculpt interest payments to energy savings: this may allow the borrower to match payments to revenue savings.