Triodos has successfully finalised its Green Bond Framework, enabling the bank to issue a subordinated Green Bond that is aligned with the best market standards. These include the ICMA Green Bond Principles, the Climate Bond Initiative Standards, the EU Taxonomy and the EU Green Bond Standard.
For the ‘Use of Proceeds’ in Triodos’ Green Bond Framework the bank selected the following categories:
(1) Renewable Energy,
(2) Environmentally Sustainable Management of Living Natural Resources & Land Use, and
(3) Green Buildings
Vigeo Eiris provided a second party opinion on Triodos’ Green Bond Framework and confirmed best practices on all components within their assessment. This confirms the bank’s ambition to ‘change finance, by financing change’ and underlines its position as frontrunner in sustainable banking.
Andre Haag, CFO of Triodos Bank N.V.: “With our chosen strategic impact themes: Energy & climate, Nature & Food and Social Inclusion, we have built our bank around addressing the urgent challenges the world is facing. This makes Triodos more relevant than ever and I believe that we have an important role to play in maximising societal impact by offering sustainable loan products. The completion of our Green Bond Framework is a major step for Triodos and fits perfectly with our ambition to use money more consciously to create sustainable and enduring change. It allows us to diversify our capital base and to fund values-led initiatives that shape the change we envisage.”
Triodos is planning the launch of its first subordinated Tier 2 Green Bond and is currently engaging with professional investors to gather feedback.Triodos intends to issue a subordinated Tier 2 green bond to increase and diversify the capital base of the bank. The funds raised will support future loan growth and cover future capital requirements. The global coordinator for this inaugural green bond issue is ING, the joint bookrunners are BNP Paribas, ING and Rabobank. Triodos Bank is rated BBB by Fitch and the subordinated green bond is expected to be rated BB+ by Fitch.