BNP Paribas Closes Sustainability-Linked RCF with Brookfield Renewable Partners
January 6, 2020
Source: Yahoo Finance
BNP Paribas, a premier global banking partner, today announced that it has closed a bi-lateral, incentive-linked corporate revolving credit facility (“RCF”) with Brookfield Renewable Partners L.P. (TSX: BEP.UN; NYSE: BEP), structured as a sustainability-linked loan (“SLL”). This is one of the first SLLs offered in Canada and the first for BNP Paribas in Canada.
SLLs typically incorporate a pricing mechanism linked to a client's environmental, social or governance (ESG) performance. The key feature of this RCF structure is a pricing incentive whereby Brookfield Renewable Partners’ cost of debt declines as it continues to expand its renewable and clean electricity generating capacity and meets pre-determined CO2 emissions avoidance levels. This alignment ultimately reflects the vision of placing sustainability at the core of its business strategy.
Brookfield Renewable Partners operates one of the world’s largest publicly-traded renewable power platforms. In 2018, its portfolio helped to avoid 25 million tons of CO2 equivalent emissions. The portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, and totals over 18,000 megawatts of installed capacity and an 8,000 megawatt development pipeline. Brookfield Renewable Partners has an established track record of creating value by prudently acquiring, building and financing assets, and actively managing its operations.
“BNP Paribas’s sustainability-linked loan aligns well with our goal of expanding our renewable power portfolio as we continue to play a leading role in the decarbonization of the global power generation grid,” said Julian Deschâtelets, Managing Director at Brookfield Renewable, responsible for the capital markets and treasury function globally. “We also see this facility as a complement to issuances under our Green Bond framework.”
Sonja Volpe, Principal Officer and CEO BNP Paribas in Canada, stated: “We are delighted to be helping Brookfield Renewable Partners, one of the world's largest investors in renewable power, to build on its leadership position in renewables. The sustainability lending space has grown rapidly worldwide, and BNP Paribas is proud to be a leader in renewable energy financing, and Sustainable Finance more broadly.”
BNP Paribas has acted as Sustainability Coordinator or Sustainability Structuring Agent for many transactions this past year. Dreyfus, a leading merchant and processor of agricultural goods globally, and NRG Energy, a U.S. power utility leader, each announced debut SLLs structured by the Bank in the U.S. in July. In the UK, BNP Paribas provided Optivo, a charitable housing association, as well as UK Housing Association Peabody Trust, with five-year RCFs.
In 2011, BNP Paribas decided to place the fight against climate change at the forefront of its priorities. The Bank financed more than €15bn in renewable energy in 2018, and is among the top 3 issuers of green bonds in euros. At the end of 2018, the total financing provided by BNP Paribas that contributed to the energy transition and the SDGs was €168bn.
About BNP Paribas in Canada
For over 55 years, BNP Paribas in Canada has been helping Canadian businesses and institutions grow by offering them a full range of specialized financial services and investment products. With over 1,000 employees in offices in Montreal and Toronto, BNP Paribas in Canada combines a clear understanding of the Canadian landscape with global expertise.
About BNP Paribas
BNP Paribas is a leading bank in Europe with international reach. It is present in 72 countries, with more than 202,000 employees, of whom more than 154,000 are in Europe. The Group has key positions in its three major business areas: Domestic Markets and International Financial Services, whose retail banking and financial services networks are grouped into Retail Banking & Services, and Corporate & Institutional Banking, which focuses on corporate and institutional clients. The Group supports all of its customers (individuals, associations, entrepreneurs, SMEs, large businesses and institutions) in carrying out their projects by offering them financing, investment, savings and protection services. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leading specialist in retail financing in Europe. BNP Paribas is also developing its integrated retail banking model in the Mediterranean basin countries, Turkey and Eastern Europe and has a significant network in the West of the United States. In its Corporate & Institutional Banking and International Financial Services businesses, BNP Paribas enjoys leadership in Europe, a strong presence in the Americas, as well as a solid and fast growing business in Asia Pacific.