Leading sustainability publication Environmental Finance recognised BNP Paribas in several Bond Awards across this year’s categories including:
- Loan structurer/arranger/coordinator of the year
- Lead manager of the year award for both bank-issued social bonds and sovereign sustainability bonds
- Highly commended for corporate green bonds
Environmental Finance applauded how BNP Paribas has ‘embedded its sustainability experts into its issuance team and practices extensive outreach with investors’.
Upon the occasion of the awards, the bank’s sustainable finance experts and a selection of our leading corporate and institutional clients reflect on the latest developments across the market and share some key highlights from recent transactions.
When it comes to governments mobilising on sustainable finance, Laurent Leveque, Global Head of Official Institutions Coverage at BNP Paribas noted, “financing national transition strategies through sustainability bonds allows governments to invest in decarbonised infrastructure and sustainable development catalysts.”
BNP Paribas support of the recent Italian Green BTP demonstrated this alignment of governments to energy transition and the Italian Ministry of Economy and Finance (MEF) explained: “we are widening the country’s commitment to the European Commission’s framework for achieving climate neutrality by 2050 and the goals set out in the European Green Deal.”
Green issuance has now become a must for the insurance industryLaurent Leveque, Global Head of Official Institutions Coverage, BNP Paribas
On investor engagement, Frederic Zorzi, Global Head of Primary Markets at BNP Paribas said, “investors are encouraging increased disclosure to better analyse key portfolio risks stemming from extra-financial issues and developing sustainable capital markets through growing demand for access to ESG assets.”
ESG integration by insurers is a key trend and Nandini Mongia, Treasurer of Prudential highlighted “at a time when ESG is becoming an increasingly important area of focus in global markets, we are very pleased to underscore our commitment to the environment with an offering that meets the goals and criteria of investors seeking sustainable opportunities.”
The sustainable finance market is evolving rapidly, and Delphine Queniart, Global Head of Sustainable Finance And Solutions at BNP Paribas Global Markets noted, “a noticeable progression is that innovation in sustainable capital markets is extending beyond the bond market into other solutions such as convertible sustainability-linked instruments”
Sustainability targets will be a greater area of focus for corporates noted Cécile Moitry and Agnès Gourc, Co-heads of BNP Paribas Sustainable Finance Markets; “KPIs will become increasingly standardised within sectors”, adding: “through embedding science-based and tangible KPIs into the public bond market instrument, corporates are materially engaging with investors on their sustainability strategy”.
Corporates such as UK retailer Tesco are at the forefront of integrating sustainability in their financing approach, Alan Stewart, Tesco Chief Financial Officer highlighted “linking our financial strategy to our long-term commitment to tackle sustainability is an important step in ensuring that it is embedded across our business.”
The development of the sustainability-linked loan (SLL) market in Asia Pacific was spotlighted with Michael Ferguson, Chief Financial Officer of Downer discussing the company’s SLL, “we are pleased to have the ultimate loan facility outcomes linked to the development of our workforce and our decarbonisation commitments.”
Credibility is critical to scale up sustainable finance concluded Constance Chalchat, Head Of Company Engagement at BNP Paribas CIB, “to ensure that finance remains an accelerator in supporting the sustainability transition of our clients, the tangibility and credibility of the embedded ambitions are critical. This means integrating additionality into the approach to transform a business model beyond business as usual, and will create robust, ambitious and scalable sustainable development roadmaps”.