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Sustainable Solutions

We offer our support to corporate customers for evaluating and structuring sustainable finance solutions.

  • Use-of-Proceeds Financing

    Financing solutions where proceeds are allocated exclusively to eligible green or social assets and projects that meet applicable sustainability criteria.

  • Sustainability-Linked Financing

    Financing solutions that link financial terms to predefined sustainability targets relevant to the borrower's business strategy.

  • Recognised Market Standards

    Each financing structure is assessed individually and intended to follow the relevant LMA or ICMA principles, guidelines and applicable market standards for the respective financing format.
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Sustainable Finance Formats

The suitability of each financing structure depends on the characteristics of the asset, project or borrower and is assessed individually against the criteria and recognised market standards applicable to the respective financing format. Sustainable finance solutions can be structured in two main formats: Use-of-Proceeds Financing and Sustainability-Linked Financing. Each format is intended to be structured with reference to the relevant Loan Market Association (LMA) or International Capital Markets Association (ICMA) principles, guidelines and applicable market standards.

Use-of-Proceeds Financing

Use-of-Proceeds Financing is intended to include Green, Social and Sustainability financing instruments, with proceeds allocated exclusively to green or social eligible assets or projects that meet applicable EU Taxonomy (Regulation EU 2020/852) criteria or the eligibility criteria as defined in the RBI Sustainability Bond Framework, which is supported by an independent Second Party Opinion (SPO). 

Examples may include:

• Zero direct emission vehicles and the supporting infrastructure
• Renewable energy projects
• Buildings where the Primary Energy Demand (PED) is at least 10% lower than the threshold set for the Nearly Zero Energy Building (NZEB) requirements in the relevant jurisdiction

Use-of-Proceeds financing is intended to be structured in line with the relevant LMA Green Loan Principles or Social Loan Principles, or the ICMA Green Bond Principles, Social Bond Principles or Sustainability Bond Guidelines.

Sustainability-Linked Financing

Sustainability-linked financing aims to tie financial terms to predefined sustainability KPIs and targets relevant to the borrower’s business strategy. The financing can be used for general corporate purposes and is structured in line with the LMA Sustainability-Linked Loan Principles or ICMA Sustainability-Linked Bond Principles.

Key elements:

  • Relevant and measurable KPIs and annual targets, such as annual greenhouse gas emissions emissions reduction targets
  • Pricing adjustments based on the achievement or non-achievement of the targets
  • Annual reporting and independent external verification, for example by an auditor or environmental consultancy firm

 

Products & Services

Sustainable finance solutions can be structured through a range of products and services, including:

Loans
Bonds
Schuldscheindarlehen
Trade Finance
Leasing
Swaps

EU Taxonomy-aligned solutions

We offer our support for the financing of projects and investments that can be assessed against the EU Taxonomy. Our team seeks to support you throughout the assessment, documentation, and financing processes.

Eligible activities are economic activities covered by the EU Taxonomy. An eligible economic activity may be considered EU Taxonomy-aligned if it:

  • makes a substantial contribution to at least one of the EU Taxonomy’s environmental objectives;
  • meets the applicable Do No Significant Harm (DNSH) criteria; and
  • complies with the Minimum Safeguards.

Potentially eligible activities include renewable energy, construction and real estate, transport, and manufacturing.

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Frequently Asked Questions

Use-of-Proceeds Financing is intended to include Green, Social and Sustainability financing instruments, with proceeds allocated exclusively to green or social eligible assets or projects that meet applicable EU Taxonomy (Regulation EU 2020/852) criteria or the eligibility criteria defined in the RBI Sustainability Bond Framework, which is supported by an independent Second Party Opinion (SPO).

Sustainability-linked financing aims to tie financial terms to predefined sustainability KPIs and targets relevant to the borrower’s business strategy. The financing can be used for general corporate purposes and is structured in line with the LMA Sustainability-Linked Loan Principles or ICMA Sustainability-Linked Bond Principles.

In Use-of-Proceeds Financing, the proceeds are allocated exclusively to eligible green or social assets or projects. In Sustainability-Linked Financing, the funds can be used for general corporate purposes, and it is the financial terms that are tied to predefined sustainability KPIs and targets.

Examples may include zero direct emission vehicles and the supporting infrastructure; renewable energy projects; and buildings where the Primary Energy Demand is at least 10% lower than the threshold set for Nearly Zero Energy Building requirements in the relevant jurisdiction.

Each format is intended to be structured with reference to the relevant Loan Market Association (LMA) or International Capital Markets Association (ICMA) principles, guidelines and applicable market standards — including the LMA Green Loan Principles, Social Loan Principles, and the ICMA Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines.

The RBI Sustainability Bond Framework, which defines eligibility criteria for Use-of-Proceeds Financing, is supported by an independent Second Party Opinion.

An eligible economic activity may be considered EU Taxonomy-aligned if it makes a substantial contribution to at least one of the EU Taxonomy’s environmental objectives, meets the applicable Do No Significant Harm (DNSH) criteria, and complies with the Minimum Safeguards.

Potentially eligible activities include renewable energy, construction and real estate, transport, and manufacturing.

Sustainable finance solutions can be structured through a range of products and services, including loans, bonds, Schuldscheindarlehen, trade finance, leasing and swaps.

Sustainability-linked financing includes annual reporting and independent external verification, for example by an auditor or environmental consultancy firm.