ING Groep N.V. has come to market with Climate Bonds Certified green bonds totalling USD3bn
Largest transaction Certified under the Climate Bonds Standard
Largest green bond deal from a European bank
Record Climate Bonds Certified deal
The EUR1.5bn (12-year) and USD1.25bn (long 8-year) tranches issued by ING’s Holdco were oversubscribed, with final books growing to just under EUR4bn and USD3bn respectively.
The green bonds were Certified under the Wind, Solar, Marine Renewables (offshore wind), and Low Carbon Buildings (Residential and Commercial) Criteria of the Climate Bonds Standard. A Second Party Opinion was provided by ISS-oekom and a pre-issuance impact report from Navigant for Renewable Energy and CFP for Green Buildings.
ING Groep N.V. ('ING Group') is a global financial institution with a strong European base and long sustainability track record. Its climate action leadership is beginning to steer a EUR600bn lending portfolio towards the Paris Agreement 2-degree target.
This second benchmark transaction follows an inaugural USD800m and EUR500m green deal issued in November 2015.
The 5 biggest Certified Green Bonds*
ING Groep N.V: USD 3.0 bn November 2018: Solar, Marine Renewables (offshore wind), Low Carbon Buildings
New York MTA: USD 2.17 bn December 2017: Low Carbon Transport
Industrial & Commercial Bank of China (ICBC), Luxembourg: USD 2.14 bn October 2017 Solar, Wind, Low Carbon Transport
DNB Boligkredditt, Norway: USD 1.77 bn June 2018 Residential Buildings
China Development Bank: USD 1.62 bn November 2017 Low Carbon Transport, Wind, Water Infrastructure
Who’s saying what?
Hans Biemans, Head of Sustainable Market, ING:
“ING recognises that climate change is an unparalleled challenge for our world and ING’s ambition is to become the industry leader in sustainable finance while contributing to a low-carbon and self-reliant society. Issuing green bonds is part of our corporate response to meeting the goals of the Paris Agreement, supporting the strong growth of our Sustainable Finance portfolio and demonstrating our commitment to sustainability and sustainable finance. Climate Bonds Certification signals to the market and both institutional and retail investors that we support best practice and robust standards in green finance.”
Manuel Adamini, Head of Investor Engagement, Climate Bonds Initiative:
“ING’s second green deal is the largest Climate Bonds Certification to date. It’s a pointer for other banks still considering their initial green issuance. Facing serious climate impacts from being headquartered in a country for which sea level rise is extraordinarily threatening, ING as a repeat green issuer is demonstrating the financial leadership that banks and corporates need to emulate if we are to accelerate climate-based investment and low carbon transition.”
The last word
We can't say it better than Mr. Bieman and Mr. Adamini above.
Tackling climate change is urgent. Investor demand for green product is growing. Nations, communities and corporates must adapt and become resilient to worsening climate and associated weather impacts. Green bonds are the major factor in generating the investment capital needed for low carbon transition.
This best practice deal shows financial institutions in Europe the kind of transactions they need to emulate. Scale and repeat issuance is the key.
ING have set a new Certification benchmark. Is there anyone who can top it?
'Till next time,
*All figures are USD equivalent