Rabobank in business

Green financing enables investors to finance green projects less expensively, by offering a lower interest rate for environmentally-friendly investments.

Green financing opportunities are bases on the so-called Green Funds Scheme. This is a tax incentive scheme of the Dutch government, which only applies to the Netherlands and non-OECD countries. Green retail investors have a tax advantage if they invest in green funds or bonds. Part of the tax advantage is passed on to companies which invest in sustainable activities.

Rabobank allocates at least 70% of the proceeds of Rabo Green Bonds to provide loans to companies that invest in green projects like:

• organic farming; 
• sustainable construction; 
• sustainable innovations such as agrification; 
• sustainable energy from wind, water, sun and biomass; 
• projects relating to the forest and nature.  

The first project financed with green finance was completed in December 1995. Since then, the amount of green financing provided by Rabobank Group has risen sharply. Rabobank accounts for 50% of the total number of green-financed projects in the Netherlands. At the end of 2006 Rabobank contributed in excess of €2.4 billion to green investments.