Highlands rewilding bridging loan

Habitat restoration can play an important role in reducing greenhouse gas emissions, enhancing biodiversity, and delivering wider co-benefits. The UK Infrastructure Bank committed £12m via a bridging loan to support Highlands Rewilding Limited (HRL) to acquire Tayvallich Estate, a 1,300-hectare estate in Scotland.

UKIB’s involvement is expected to help HRL build its natural capital data and research platform, which will contribute to nature restoration and biodiversity improvements. HRL’s plans for the Tayvallich Estate include the restoration of temperate rainforest, the restoration of marine habitats, and a move to regenerative agriculture, all of which can be anticipated to yield improvements in natural capital assets – including nature-based greenhouse gas removals.

This project marked the Bank’s first investment in the natural capital sector and its first deal exclusively in Scotland. The data and learnings from the project are expected to contribute to high-integrity natural capital market development, including informing policy-setting, and increased understanding of the restoration of ecosystems across the UK.

UKIB’s investment enabled HRL to secure Tayvallich Estate and move to further rounds of financing with potential investors, with a view to developing new models for attracting private investment into emerging biodiversity and carbon markets.

The project will also bring benefits for regional and local economic growth through eco-tourism and other joint community ventures, and the creation and safeguarding of five jobs.

Shelley De Souza, Director, Banking & Investments at UKIB, said: 

It was fulfilling to see UKIB’s bridging loan enable Highlands Rewilding to successfully acquire the Tayvallich Estate and start to implement its ambitious nature recovery plan. As well as preserving the Tayvallich Estate for climate and biodiversity benefits, Highlands Rewilding is working with the local community to facilitate the development of affordable housing and to create local jobs. UKIB’s financing has also acted as catalyst to unlock other funding options, which require time to implement, and we are looking forward to seeing the progress made at Tayvallich in the coming years.