Deutsche Bank completes its first ESG-linked repo transaction
18 August 2021 Frankfurt
Image: julia_arda
Deutsche Bank has completed its first global Environmental, Social, and Governance (ESG) repurchase transaction with Turkey’s Akbank.
The structure of the transaction was carried out using electricity generated through renewable resources with no greenfield coal power plant loan origination.
The US $300 million (£217 million) transaction is also the first time ESG and sustainability targets have been attached to interbank financing in a repo format in Central and Eastern Europe, Middle East and Africa.
Commenting on the transaction, Sebnem Muratoglu, executive vice president for treasury at Akbank says: “We recently pledged that we will not be lending to greenfield coal power plant projects, adding them in our exclusion list.”
She adds: “We aim to increase the share of sustainable finance-based borrowing transactions in our overall portfolio to 30 per cent by the end of 2021 and this latest transaction with Deutsche Bank also underlines our commitment.”
Claire Coustar, global head of ESG for fixed income and currencies and vice chair of Deutsche Bank AS Turkey board of directors, comments: “This transaction demonstrates our joint ability to innovate in ESG as well as stand behind our ESG ambitions through economic alignment.”
She adds: “We look forward to further opportunities to collaborate on sustainability initiatives with Akbank and its parent, the Sabanci Group, in the future.”
The structure of the transaction was carried out using electricity generated through renewable resources with no greenfield coal power plant loan origination.
The US $300 million (£217 million) transaction is also the first time ESG and sustainability targets have been attached to interbank financing in a repo format in Central and Eastern Europe, Middle East and Africa.
Commenting on the transaction, Sebnem Muratoglu, executive vice president for treasury at Akbank says: “We recently pledged that we will not be lending to greenfield coal power plant projects, adding them in our exclusion list.”
She adds: “We aim to increase the share of sustainable finance-based borrowing transactions in our overall portfolio to 30 per cent by the end of 2021 and this latest transaction with Deutsche Bank also underlines our commitment.”
Claire Coustar, global head of ESG for fixed income and currencies and vice chair of Deutsche Bank AS Turkey board of directors, comments: “This transaction demonstrates our joint ability to innovate in ESG as well as stand behind our ESG ambitions through economic alignment.”
She adds: “We look forward to further opportunities to collaborate on sustainability initiatives with Akbank and its parent, the Sabanci Group, in the future.”
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