Rabobank Sustainable Funding
Rabobank is a cooperative bank with a leading position in sustainability-oriented banking. This means it is only natural to obtain funding in a sustainable manner. To this end, Rabobank has developed the Rabobank Sustainable Funding Framework.
Unique to the framework is the use of sub-frameworks, offering investors more guidance and clarity on their sustainable investments upfront. The current offering of sub-frameworks covers the following eligible projects: Renewable Energy, Green Commercial Real Estate, Green Residential Real Estate, SME, Healthcare and Care Facilities and Covid-19 Crisis Support to SMEs. Each of the sub-frameworks outline the eligible projects for that specific bond.
For investors, this results in increased transparency, enabling them to make even more specific investment decisions in their responsible investment strategies. The sub-framework under which an instrument is issued, will be announced before each transaction. This differs considerably from traditional green, social or sustainability bond frameworks which usually have a multitude of different categories that funding can go into.
Broad range of instruments
Investors can fund our sustainable activities through a broad range of sustainable instruments – going far beyond traditional Green Bonds. Under our current Sustainable Funding Framework we can issue Green and Social versions of e.g. commercial paper, certificates of deposit and derivatives. All these instruments will be issued under one sub-framework, meaning that the proceeds of an instrument will go into Eligible Projects from only one of our four sub-frameworks at a time.
Alignment with principles and standards
The Rabobank Sustainable Funding Framework follows the ICMA Green and Social Bond Principles, the LMA/APLMA/LSTA Green Loan Principles and aligns with the latest EU standards where applicable. We address the achievement of global environmental objectives, adhere to no harm principles and social safeguards and categorized our Renewable Energy projects by the EU Taxonomy for Sustainable Finance. The Framework has received a positive Second Party Opinion by ISS ESG, which highlights the significant contribution to United Nations Sustainable Development Goals of each sub-framework.
Growing a Better World Together
The Rabobank Sustainable Funding Framework is the result of Rabobank’s ongoing efforts to link sustainability with the way the bank is funded. As a cooperative bank with a front-running position in sustainability-oriented banking, we continuously focus on realizing our mission ‘Growing a Better World Together’. Rabobank supports its customers and those around them in improving sustainability by providing financial solutions, expertise and access to networks (and have been doing so since the 19th century). We follow strong sustainability policies and set clear sustainability targets to achieve. This approach has led to top positions in the sustainability rankings of all large independent ESG rating institutions.
Rabobank Sustainable Funding
- Sustainable Funding Framework (June 2021)
- Rabobank Sustainable Funding Investor Presentation (September 2020)
- ISS ESG Second-Party Opinion on Rabobank Sustainable Funding Framework (September 2020)
- ISS ESG Second-Party Opinion on Sustainable Funding Framework – Sub Framework V: Green Residential Real Estate (May 2021)
- ISS ESG Second-Party Opinion on Sustainable Funding Framework – Sub Framework VI: Small and medium-sized enterprises (June 2021)
Rabobank Green Bond Reports
Sustainable financial instruments outstanding
(10 March 2021)
|Original currency (mn)||Allocation to eligible projects|
|Green Bonds (EUR)||1,250||1,250||100%|
|Green Bonds (USD)||1,677||2,000||100%|
|Green Deposits (EUR)||150||150||100%|
|Green Deposits (USD)||231||275||100%|
|Total volume of Green Finance Instruments||3,308||100%|