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27.03.2019 | Group
On March 26, Deutsche Börse, a German company specialising in stock market transactions and its subsidiary for post-trading services, Clearstream Banking S.A, announced that they would be extending their existing credit line with a Positive Incentive Loan.
The financing, a €750 million consortium credit, has a special feature: The development of the credit terms depends on the achievement of specific sustainability targets by the company. The extension by ESG criteria (Environmental, Social and Governance) is a clear commitment of Deutsche Börse Group to establish sustainable finance in all business sectors as well as in its own financing. The transaction was concluded with a bank consortium led by BNP Paribas and Commerzbank.
The sustainability performance of Deutsche Börse Group is verified by Sustainalytics, a leading sustainability rating agency. Based on this independent analysis, conditions and financing costs of the loan are re-specified every twelve months.
Torsten Murke, CEO Corporate & Institutional Banking, BNP Paribas Germany, added: “We are delighted to have advised Deutsche Börse in our role as sustainability coordinator. This successful transaction is the outcome of close cooperation based on the shared understanding of both our companies that sustainable finance is instrumental to an ecologically and socially more sustainable economy. Deutsche Börse’s transaction comes just a few days after the German Government’s announcement to make Germany a leading location for sustainable financing. This underlines the determination to help proactively shape a broad economic agenda to promote sustainable finance.”
This successful transaction is the outcome of close cooperation based on the shared understanding of both our companies that sustainable finance is instrumental to an ecologically and socially more sustainable economy.
BNP Paribas confirms once again its position as a leader in Positive Incentive Loans with this new credit agreement for Deustche Börse. Over the past several months, BNP Paribas has provided support to several customers, such as Danone, Solvay, L&Q, Thames Water, etc.
These are loans whose interest rates are linked to the achievement of certain objectives, such as CO2 reduction or energy efficiency. These loans are beneficial for customers, who gain a few margin points on the interest rate of their loans. PILs, along with rate indices based on Environmental, Social and Governance (ESG) criteria, are seeing strong growth and are new sustainable financing products.
Photos: ©Francois Roux / ©svetlana