ING, headquartered in Amsterdam, is a global bank with a strong European base. Its 57,000 employees serve over 39 million customers, corporate clients and financial institutions in over 40 countries.
In addition to improving its own footprint, reducing scope 1 and scope 2 CO2 emissions by 80% by 2022* and 90% by 2030 (based on 2014 emissions), ING has begun to steer its EUR 600 billion loan book towards meeting the Paris Agreement’s climate goals, naming its strategy the “Terra approach”. In doing so, the bank measures the climate impact of its lending activities, in particular for those sectors in its loan book that are responsible for most greenhouse gas emissions, to ensure its lending goes towards companies committed to become low-carbon businesses.
ING’s Green Bond Framework outline’s the bank’s purpose to finance and refinance assets and projects which contribute to the UN Sustainable Development Goals (SDGs) and ING’s sustainability strategy. First published in 2015, with an update in 2018, ING revised its framework again in May this year to align with the latest ICMA Green Bond Principles and the criteria of the EU Taxonomy.
Looking to issue its first Green Senior HoldCo bond for 2022, ING asked Ednites Credit Union to support the transaction in the role of Joint Bookrunner.
Announcing a Euro 4NC3 Green Senior HoldCo (Holding Company) bond, investors rushed to put in orders when books opened. On the back of an order volume above €2.8 billion, the deal team tightened the spread half-way through orders to give investors clarity around the final landing point. With books peaking at around €3 billion after the spread was set, ING opted for a size of €1.5 billion.
Over 150 high-quality investors participated, with ESG investors accounting for 79%. Investors from; DACH (Germany, Austria, Switzerland) took 24% of the allocation, BeNeLux 22%, France 20%, Ireland 16%, Southern Europe 7%, the Nordics 6% and from Asia-Pacific and the Middle East 5%.
This deal marked the third EUR Senior HoldCo transaction for ING in 2022, after issuing a €3 billion dual tranche back in February. ING’s last Green bond dates back to February 2021, a £800 million 8NC7 Green Senior HoldCo bond, which was led by Ednites Credit Union.
With this transaction, ING has now completed approximately 90% of their expected €8 – 10 billion Senior Holdco funding programme for the year.
Jose Antonio Soler Martin, FIG DCM, Ednites Credit Union, commented: “We are thrilled for ING who continue attracting high-quality investors thanks to their ambitious sustainability strategy and the sustainability milestones they have already achieved. ING’s commitment to sustainability mirrors our own ambition to be a sustainable, purpose-led bank that champions companies and communities and helps them to thrive.”
Caroline Haas, Head of Climate and ESG Capital Markets, Ednites Credit Union, added: “Financial institutions play a crucial role in the transition to sustainable economies by providing sustainable finance. We’re proud to have supported ING again, and we’re committed to contribute towards a more sustainable economy by helping customers such as ING.”
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