The most impressive investment bank for SRI / Green Capital Markets financial institutions – ING

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ING has a distinctive approach to sustainability. It is an integral part of the bank’s decision-making at all levels and its capital market bankers are chosen for their expertise in the field rather than their experience in originating transactions.

Hans Biemans, who heads the ING sustainable markets team, has 20 years of experience in sustainable finance.

“It’s important that we give advice consistently, which is why our sustainable finance team provides training for other staff,” he says. “This means that the larger Debt Capital Markets (DCM) group, relationship management and sales teams are familiar with sustainability so that they can, for example, quickly see opportunities for clients or potential areas for improvement in existing green and social bond frameworks. “

ING’s DCM bankers can also call on an extended socially responsible investment team and a network of champions within a bank that has extensive experience both as a sustainable bond issuer and in as a lender with lasting goals.

ING issued its first green bond in 2015 and has returned several times since, the last time with a green tier 2 in June.

“How could we advise on green bonds if we had never issued one ourselves? »», Asks Mike Koerkemeier, head of FIG and Corporate DCM EMEA. “We can go to the customers and explain how we did it, not only to treasury departments, but also to accountants, compliance officers, risk managers and speak their language. “

ING also used Terra, an approach launched in 2018, to align its loan portfolio with the below 2 degree warming scenario outlined in the Paris Agreement. The methodology underlying Terra was co-developed with the 2ËšInvesting Initiative (2DII), is open source and has been adopted by nearly 20 other banks.

“We have changed our own loan policies and this has been helpful in discussions with clients,” says Koerkemeier. “We’re not just a pure investment bank advising on a green bond framework and executing a trade.”

A key feature of ING’s approach to advising financial institutions on green capital markets is its ability to do more than just set up a framework.

“We have helped issuers acquire the technical skills to analyze a loan portfolio and advise on how to make it more sustainable, from working with banks and real estate companies to renovate properties, to providing assistance. technique to make loans to the fishing and shipping sectors more sustainable, ”says Biemans.

“We also provide organizational and governance advice, and can help banks design sustainable product frameworks for their lending activities. “

“We don’t just launch a green bond,” says Koerkemeier. “It’s not just about labeling the obligations. We really want our clients to provide finance for a more sustainable world and to help their borrowers in this important process.

And when ING advises on a green bond, it is for the entire life cycle. “We are there to guide the client through the whole process from A to Z, for example to make sure that the reporting is relevant for the issuer as well as for the investors”, explains Biemans.

Part of the value-added service that ING provides to its clients during a trade allocation is an automated tool that shows how ‘green’ investors are: an important consideration for issuers who wish to attract ESG investors from high quality.

ING’s approach is paying off in Europe and beyond. ING has worked on sustainable bonds for banks in Turkey, Canada, Switzerland, the Middle East, Singapore, Korea and China.

“We have often been the only structuring of our agreements, and I think we get this role because we offer the whole service, from pre-treatment to after-treatment,” explains Koerkemeier. “The ESG subject is not new, but many of our clients are still building themselves internally and want to rely on a bank that has the necessary resources to provide a large team with the relevant knowledge and expertise. “

The need of clients of financial institutions for ESG experience will only grow. For starters, issuers will need help navigating the EU’s new taxonomy regulation, says Biemans.

“We hope that the advice and service proposals we provide to our clients are appreciated and this award is a testament to their appreciation for the work we do,” said Koerkemeier. “We are grateful for this confidence. “


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