Octopus Electric Vehicles has secured a £550m debt securitisation facility from Lloyds Bank to fund electric vehicles for its salary sacrifice scheme.

Octopus now has a fleet worth more than £450m and has more than 4,000 businesses signed up to its flagship salary sacrifice offer

The new debt facility takes the EV leasing firm’s total electric car funding to £1.2bn and will enable it to continue its mission to help more drivers switch to EVs.

First launched in 2019 as part of the Octopus Energy Group, Octopus EV now has a fleet worth more than £450m, including 85 different models from 28 brands.

More than 4,000 companies are signed up to its sal-sac solution, including household British businesses such as Dyson, McLaren and Innocent Drinks.

Launched in 2021, the scheme enables drivers to save 30-40% each month on a brand-new electric vehicle. The all-in-one service includes the car, charger and discounted energy tariff.

New arrivals include the Fisker Ocean Extreme, after Octopus became the lease provider to offer the electric SUV in the UK. It also agreed a landmark deal earlier this year to purchase 5,000 cars from China’s BYD, including the Atto 3 crossover.

Octopus EV also branched into offering salary sacrifice for used EVs earlier this year, cutting the cost of going electric.

Rumours in the EV community earlier this year had suggested that Octopus EV was looking for further funding.

Fiona Howarth, CEO of Octopus Electric Vehicles, commented: “Electric cars are revolutionising our roads. With battery prices down 90% since 2010, electric cars are more affordable and can travel further than ever on a single charge. Drivers can fill up at home, work or on public networks, many saving over £1,000 every year on fuel.

“The tech in our pocket transformed when Apple led the smartphone revolution. Now our roads are catching up, and with Tesla leading the way, there are now almost 30 brands with great EVs on sale in the UK.

“We’re delighted to be partnering with Lloyds to supercharge the transition, with an additional £550m to help drivers switch from old school gas guzzlers to a cleaner alternative.”

Octopus recently expanded into America with the launch of Octopus Electric Vehicles state-side.

The business has also opened up its full-service electric car package to drivers outside of salary sacrifice, enabling anyone to sign up to the all-in-one service, regardless of where they work.

Transport Secretary Mark Harper said: “As more electric vehicles become available for consumers, private sector innovation plays an important role on the road to zero emission vehicles.

“That’s why it’s fantastic to see Octopus EV expand their flagship salary sacrifice scheme to help drivers with the upfront costs and easily make the change – with government already committing to £2bn to support the transition to zero-emission vehicles, today’s announcement shows the UK continues to make good progress on enabling people to buy the zero emission vehicles they want.”

Miray Muminoglu, managing director, head of Securitised Products Group and FIG DCM at Lloyds Bank, commented: “We’re delighted to become a funding partner to Octopus EV with this innovative £550m securitisation facility. Given the alignment across the two institutions in supporting the transition to net zero, and our leading auto franchise within SPG, this facility demonstrates not only our strategic ambitions to broaden and deepen our client relationships but also our commitment to help Britain prosper.”