LONDON, Dec 4 (Reuters) – An offshoot of Britain’s Octopus Energy has secured a half-billion pound banking deal to finance an expansion of its programme to allow the discounted purchase of electric vehicles (EVs) by the employees of corporate customers.

Octopus Electric Vehicles operates a “salary sacrifice” scheme that allows drivers to save up to 40% on a new EV by paying through their gross salary – saving income tax and national insurance.

The company said on Monday it had won 550 million pounds ($699 million) in financing from Lloyds Banking Group (LLOY.L) to expand the scheme, bringing its total funding to 1.2 billion pounds.

“We’re delighted to be partnering with Lloyds to supercharge the transition … to help drivers switch from old-school gas guzzlers to a cleaner alternative,” Octopus EV CEO Fiona Howarth said in a statement.

So far Octopus EV has financed more than 450 million pounds worth of EVs on the road in Britain. The company provides a package, including the EV, a charger and discounted energy tariff.

Octopus EV offers more than 85 vehicles from 28 different brands and said it has more than 4,000 companies signed up to its salary sacrifice scheme, including Dyson, McLaren and Innocent Drinks.

($1 = 0.7874 pounds)

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