Trends and Opportunities: Financing Investments Sustainably

Our investment finance experts think far beyond conventional financing. We help our customers with low-interest and subsidized loans, for example, and provide support with grants and guarantees from development banks as well as refinancing and guarantees from Oesterreichische Kontrollbank. These organizations do not provide subsidized and export-supporting financing directly. That is why companies can rely on a commercial bank like RBI. We also specialize in financing green investments and accompany our clients on their path to a sustainable economy. 

Decarbonization is a big issue for companies today, mainly because there are more and more regulations on emissions measurement and reduction. In addition, fewer and fewer emission certificates are available, and those that are available are becoming more expensive. Although there have been some delays with new regulations recently, the issue remains relevant. We expect the trend toward sustainable financing to continue in the long term. 

Our customers benefit from a wide range of products for financing sustainable investments. This allows us to optimally support companies at every stage of their green transformation. Our colleagues in the Sustainable Finance division have the necessary expertise to assist with structuring the financing. 
 
One example is loans that are linked to jointly agreed performance targets, such as annual CO2 emissions. We agree on incentives in the contract that come into effect if the customer adheres to a predefined path to achieving the targets over the term of the loan. If the targets are met, this has a positive effect on the agreed margin. 
 
We are also increasingly focusing on so-called “use of proceeds” formats. These are investments that meet predefined criteria. Examples include the purchase of energy-efficient machinery, the construction of biomass power plants, or energy-efficient production buildings, to name a few other than the much-cited PV systems. We are guided by international standards such as the LMA Green Loan Principles, but also by the EU taxonomy as a classification framework for sustainable economic activities.  
 
Together with Oesterreichische Kontrollbank and the development banks, we can combine attractive external refinancing with increased guarantees and subsidies for sustainable projects. For investments in renewable energies, the guarantee can even be as high as 70%. The German development bank Kreditanstalt für Wiederaufbau also supports sustainable investments with low-interest loans and subsidies. Their refinancing options are also available to non-German companies, as long as there is a relevant connection to Germany. 

When we structure financing, we want to explore all possibilities for our customers and provide them with tangible benefits. To do this, we first need to understand exactly what type of investment is involved. Based on the investment list – and, of course, taking into consideration the relevant risk parameters of our bank – we explore whether subsidies, low-interest loans, and guarantees can be obtained and how we can best combine them. We guide and accompany our customers through the entire process, from the initial consultation to structuring the financing and drafting the contract to cooperation with external partners. 
 
A practical example: For a furniture manufacturer, the thermal roof renovation and installation of a photovoltaic system optimized production costs and reduced CO2 emissions, while several subsidies helped lower the cost base. Sustainable financing was implemented within the framework of the EU taxonomy and the joint liability of Austria Wirtschaftsservice. This enabled us to achieve particularly attractive terms.