diff --git a/Makefile b/Makefile
index 8f0191bc0f..02e54c9e36 100644
--- a/Makefile
+++ b/Makefile
@@ -124,6 +124,11 @@ CONVERSION_GEN_BIN := conversion-gen
 CONVERSION_GEN := $(abspath $(TOOLS_BIN_DIR)/$(CONVERSION_GEN_BIN))
 CONVERSION_GEN_PKG := k8s.io/code-generator/cmd/conversion-gen
 
+ENVSUBST_BIN := envsubst
+ENVSUBST_VER := $(call get_go_version,github.com/drone/envsubst/v2)
+ENVSUBST := $(abspath $(TOOLS_BIN_DIR)/$(ENVSUBST_BIN)-$(ENVSUBST_VER))
+ENVSUBST_PKG := github.com/drone/envsubst/v2/cmd/envsubst
+
 GO_APIDIFF_VER := v0.6.0
 GO_APIDIFF_BIN := go-apidiff
 GO_APIDIFF := $(abspath $(TOOLS_BIN_DIR)/$(GO_APIDIFF_BIN)-$(GO_APIDIFF_VER))
@@ -694,6 +699,9 @@ $(GOTESTSUM_BIN): $(GOTESTSUM) ## Build a local copy of gotestsum.
 .PHONY: $(GO_APIDIFF_BIN)
 $(GO_APIDIFF_BIN): $(GO_APIDIFF) ## Build a local copy of go-apidiff
 
+.PHONY: $(ENVSUBST_BIN)
+$(ENVSUBST_BIN): $(ENVSUBST) ## Build a local copy of envsubst.
+
 .PHONY: $(KUSTOMIZE_BIN)
 $(KUSTOMIZE_BIN): $(KUSTOMIZE) ## Build a local copy of kustomize.
 
@@ -740,6 +748,9 @@ $(GOTESTSUM): # Build gotestsum from tools folder.
 $(GO_APIDIFF): # Build go-apidiff.
 	GOBIN=$(TOOLS_BIN_DIR) $(GO_INSTALL) $(GO_APIDIFF_PKG) $(GO_APIDIFF_BIN) $(GO_APIDIFF_VER)
 
+$(ENVSUBST): # Build envsubst.
+	GOBIN=$(TOOLS_BIN_DIR) $(GO_INSTALL) $(ENVSUBST_PKG) $(ENVSUBST_BIN) $(ENVSUBST_VER)
+
 $(KUSTOMIZE): # Build kustomize.
 	CGO_ENABLED=0 GOBIN=$(TOOLS_BIN_DIR) $(GO_INSTALL) $(KUSTOMIZE_PKG) $(KUSTOMIZE_BIN) $(KUSTOMIZE_VER)
 
diff --git a/hack/e2e.sh b/hack/e2e.sh
index 83609f2d0d..c26198c3b3 100755
--- a/hack/e2e.sh
+++ b/hack/e2e.sh
@@ -27,8 +27,8 @@ source "${REPO_ROOT}/hack/ensure-kubectl.sh"
 on_exit() {
   # release IPClaim
   echo "Releasing IP claims"
-  kubectl --kubeconfig="${KUBECONFIG}" delete "$(append_api_group ipclaim)" "${IPCLAIM_NAME}" || true
-  kubectl --kubeconfig="${KUBECONFIG}" delete "$(append_api_group ipclaim)" "${WORKLOAD_IPCLAIM_NAME}" || true
+  kubectl --kubeconfig="${KUBECONFIG}" delete "ipclaim.ipam.metal3.io" "${CONTROL_PLANE_IPCLAIM_NAME}" || true
+  kubectl --kubeconfig="${KUBECONFIG}" delete "ipclaim.ipam.metal3.io" "${WORKLOAD_IPCLAIM_NAME}" || true
 
   # kill the VPN
   docker kill vpn
@@ -73,10 +73,6 @@ docker logs vpn
 # Sleep to allow vpn container to start running
 sleep 30
 
-function append_api_group() {
-  resource=$1
-  echo "${resource}.ipam.metal3.io"
-}
 
 function kubectl_get_jsonpath() {
   local OBJECT_KIND="${1}"
@@ -84,7 +80,7 @@ function kubectl_get_jsonpath() {
   local JSON_PATH="${3}"
   local n=0
   until [ $n -ge 30 ]; do
-    OUTPUT=$(kubectl --kubeconfig="${KUBECONFIG}" get "$(append_api_group "${OBJECT_KIND}")" "${OBJECT_NAME}" -o=jsonpath="${JSON_PATH}")
+    OUTPUT=$(kubectl --kubeconfig="${KUBECONFIG}" get "${OBJECT_KIND}.ipam.metal3.io" "${OBJECT_NAME}" -o=jsonpath="${JSON_PATH}")
     if [[ "${OUTPUT}" != "" ]]; then
       break
     fi
@@ -101,20 +97,27 @@ function kubectl_get_jsonpath() {
   fi
 }
 
+function claim_ip() {
+  IPCLAIM_NAME="$1"
+  export IPCLAIM_NAME
+  envsubst < "${REPO_ROOT}/hack/ipclaim-template.yaml" | kubectl --kubeconfig="${KUBECONFIG}" create -f - 1>&2
+  IPADDRESS_NAME=$(kubectl_get_jsonpath ipclaim "${IPCLAIM_NAME}" '{@.status.address.name}')
+  kubectl --kubeconfig="${KUBECONFIG}" get "ipaddresses.ipam.metal3.io" "${IPADDRESS_NAME}" -o=jsonpath='{@.spec.address}'
+}
+
+export KUBECONFIG="/root/ipam-conf/capv-services.conf"
+
+make envsubst
+
 # Retrieve an IP to be used as the kube-vip IP
-KUBECONFIG="/root/ipam-conf/capv-services.conf"
-IPCLAIM_NAME="ip-claim-$(openssl rand -hex 20)"
-sed "s/IPCLAIM_NAME/${IPCLAIM_NAME}/" "${REPO_ROOT}/hack/ipclaim-template.yaml" | kubectl --kubeconfig=${KUBECONFIG} create -f -
-IPADDRESS_NAME=$(kubectl_get_jsonpath ipclaim "${IPCLAIM_NAME}" '{@.status.address.name}')
-CONTROL_PLANE_ENDPOINT_IP=$(kubectl --kubeconfig=${KUBECONFIG} get "$(append_api_group ipaddresses)" "${IPADDRESS_NAME}" -o=jsonpath='{@.spec.address}')
+CONTROL_PLANE_IPCLAIM_NAME="ip-claim-$(openssl rand -hex 20)"
+CONTROL_PLANE_ENDPOINT_IP=$(claim_ip "${CONTROL_PLANE_IPCLAIM_NAME}")
 export CONTROL_PLANE_ENDPOINT_IP
 echo "Acquired Control Plane IP: $CONTROL_PLANE_ENDPOINT_IP"
 
 # Retrieve an IP to be used for the workload cluster in v1a3/v1a4 -> v1b1 upgrade tests
 WORKLOAD_IPCLAIM_NAME="workload-ip-claim-$(openssl rand -hex 20)"
-sed "s/IPCLAIM_NAME/${WORKLOAD_IPCLAIM_NAME}/" "${REPO_ROOT}/hack/ipclaim-template.yaml" | kubectl --kubeconfig=${KUBECONFIG} create -f -
-WORKLOAD_IPADDRESS_NAME=$(kubectl_get_jsonpath ipclaim "${WORKLOAD_IPCLAIM_NAME}" '{@.status.address.name}')
-WORKLOAD_CONTROL_PLANE_ENDPOINT_IP=$(kubectl --kubeconfig=${KUBECONFIG} get "$(append_api_group ipaddresses)" "${WORKLOAD_IPADDRESS_NAME}" -o=jsonpath='{@.spec.address}')
+WORKLOAD_CONTROL_PLANE_ENDPOINT_IP=$(claim_ip "${WORKLOAD_IPCLAIM_NAME}")
 export WORKLOAD_CONTROL_PLANE_ENDPOINT_IP
 echo "Acquired Workload Cluster Control Plane IP: $WORKLOAD_CONTROL_PLANE_ENDPOINT_IP"
 
diff --git a/hack/ipclaim-template.yaml b/hack/ipclaim-template.yaml
index c32cf66837..c3e872b5bf 100644
--- a/hack/ipclaim-template.yaml
+++ b/hack/ipclaim-template.yaml
@@ -1,7 +1,10 @@
 apiVersion: ipam.metal3.io/v1alpha1
 kind: IPClaim
 metadata:
-  name: IPCLAIM_NAME
+  name: ${IPCLAIM_NAME}
+  annotations:
+    prow.k8s.io/build-id: "${BUILD_ID}"
+    prow.k8s.io/job: "${JOB_NAME}"
 spec:
   pool:
     name: capv-e2e-ippool