ING wins IFR award for green bond of the year

ING has won the ‘Socially responsible investing bond of the year’ award by International Financing Review (IFR) for its second green bond issuance. The money raised will fund a green loan portfolio of new and existing loans related to renewable energy and green buildings.

The bond, IFR writes, consists of a €1.5 billion 12-year bond tranche and a US$1.25 billion seven-year tranche. The euro tranche was the longest in the single currency, and the dollar tranche was the biggest in that currency for a green deal by a financial institution.

While ING often structures green bonds for clients, this is the second one the bank has issued. The first was in November 2015, raising approximately €1.2 billion to fund sustainable projects while also aiming to accelerate the development of what was then a fledgling green bond market.

"It's clear that investors are increasingly looking to use their portfolios to help fight the growing threat of climate change," said Leonie Schreve, global head of Sustainable Finance at ING. "We have to make an impact with our money and help investors be able to do the same."

 

Biggest impact through financing

ING is committed to better understanding the impact of its lending activities and working with clients to drive progress towards a low-carbon and self-reliant society. The bank makes its biggest contribution to a sustainable future through its financing, and has a clear set of objectives and targets for guidance.

For example, ING announced in September that it will begin steering its €600 billion lending portfolio to align with the Paris Agreement's well-below two-degree goal using a co-created, innovative measurement, called the Terra approach.

ING's Responsible Finance portfolio encompasses its climate finance portfolio (funding for companies and sectors helping to keep global warming to below two degrees Celsius, the social impact portfolio, and the funding of industry ESG leaders. The green bond will be used to fund ING's climate finance portfolio.

 

Transparent reporting

The bond was pre-certified by the Climate Bonds Initiative. In addition, ING will continue to transparently report around its green bond, building on the framework that was put in place in 2015.

ING intends to annually show the allocation and impact of the green bond proceeds to the 'Eligible Green Loan Portfolio' at least at the category level, and on an aggregated basis for all of ING's green bonds and other potential green funding outstanding. You can read the 2018 Impact Report here.

The ING Green Bond Framework has been reviewed by ISS-oekom, one of the world's leading rating agencies and an expert in the green bond market. Read its Second Party Opinion.