New approach in Rabobank Sustainable Funding Framework to increase upfront transparency
Rabobank introduces an innovation in the structuring of Sustainable Funding Frameworks, offering investors more clarity on what the sustainable investments proceeds will be used for. It is based on the unique concept of ‘sub-frameworks’ that cover one eligible project category exclusively. By issuing sustainable funding under such a sub-framework, investors can be assured that the proceeds of a transaction will go into this one, eligible project category - therefore maximizing transparency.
Rabobank’s current offering of sub-frameworks covers the following eligible project categories: Renewable Energy, Green Commercial Real Estate, Healthcare and Care Facilities and Covid-19 Crisis Support to SMEs. A broad range of sustainable instruments is available, such as Green and Social versions of e.g. bonds, commercial paper, certificates of deposit and derivatives. The Sustainable Funding Framework offers an alternative for traditional, so-called confetti bonds under which a multitude of different categories can be financed.
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. 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.
On 17 September 2020 Rabobank issued its inaugural USD Green Non-Preferred Senior bond (USD 1bn, 6NC5). This is the first offering under Rabobank’s new Sustainable Finance Framework. The proceeds of this Green Bond may be used to allocate funds to a loan portfolio of new and/or ongoing renewable energy projects, under Sub- Framework I of Rabobank’s Sustainable Funding Framework.