ING recently acted as a structuring advisor and active bookrunner on the EUR 850 million Sustainability Bond (SLB) for LafargeHolcim.
The transaction represents a few firsts. This is the first SLB for a company in the building materials sector and ING’s first SLB structuring mandate.
The target to be reached is both relevant and validated to ensure its impact. The building materials company is committed to reducing its CO emissions2 intensity in cement, serving as an important example for the global cement industry which currently accounts for eight percent of total carbon emissions. And the target will be validated by the Science Based Target initiative (SBTi). SBTi, a partnership between CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), helps companies set targets for reducing gas emissions greenhouse in accordance with climate science.
The transaction demonstrates ING’s commitment to helping its customers and society work towards a low-carbon economy, as envisioned by the Paris Agreement on climate change.
In other areas as well, ING continues to strengthen its leadership position in Europe and the world in sustainable finance.
In the fourth quarter of 2020, we supported the issuance of four green bonds, three sustainable bonds, one sustainability bond and one transition bond. ING also supported six sustainability improvement loans, three green loans and two green Schuldscheins, as well as two sustainable structured finance operations.
Always in the continuity of its commitment in the field of sustainable finance, ING is one of the 26 major banks who joined the European Banking Federation and the United Nations Environment Program Finance Initiative (UNEP FI) to assess how the EU taxonomy on sustainable activities can be applied to basic banking products to businesses. labeling or disclosure purposes.
The aim of EU taxonomy is to create a common classification system for sustainable economic activities. Establishing a common language and clear definitions of what is “sustainable” is seen as an important step that will stimulate investment in sustainable projects and activities as part of the achievement of climate and energy goals. ‘EU for 2030 and the achievement of the European Green Agreement.
Participating banks applied the taxonomy in a post-transaction analysis to 40 open or recently closed transactions and existing customer relationships. These encompassed a wide range of industries and economic activities, as well as a diverse set of banking products, corporate structures and customer geographic locations, providing unique insight and information value.
The ING case study examined a recent transaction involving a revolving credit facility (RCF) to a French real estate company listed in the Paris region active in the rental of offices, housing and student residences and also active in the development of new buildings in these asset classes. .
Commenting on the exercise, ING Group CEO Steven van Rijswijk said ING was happy to contribute to the development of the “fantastic work” of UNEP FI and the European Banking Federation. “We see taxonomy as a sustainable finance tool not only for asset managers but also for banks, because we can play an important role in financing the transition to a low carbon economy. This will certainly help us orient our loan portfolio towards the climate goals of the Paris Agreement, which we call our Terra approach.