Creating operational readiness for issuers
Green bonds are an important tool to mobilize the required investment capital for the transition to a more sustainable economy and for combating climate change. The market for green bonds has rapidly increased over the last years and will continue to grow because the demand for sustainable assets exceeds the supply by far. Issuers usually benefit from lower funding costs and from attracting new investor groups.
The introduction of the new EU Green Bond Standard (EU GBS), which is based on the EU Taxonomy, will mark the beginning of a new chapter for the European green bond market. On the one hand, the EU GBS significantly increases the requirements for issuers. On the other hand, the EU will most likely promote the use of the EU GBS by implementing corresponding incentives for issuers and investors. In order to be part of the fast-growing green bond market and to benefit from the associated advantages, bond issuers should prepare for the upcoming challenges early enough.
In this context, banks play a crucial role on the primary market for green bonds. On the one hand, they support corporates and public sector entities in green bond issuances. On the other hand, they issue green bonds themselves in order to re-finance their loan portfolio. Since the portfolio consists of many loans and the portfolio composition frequently changes, Treasury Divisions of banks face additional challenges regarding the selection and management of eligible assets for green bond issuances and regarding the required reporting.
Our consulting approach helps DCM and Treasury to create operational readiness for green bonds issuances – also under the new EU GBS. It combines our deep expertise in capital markets products and regulation with many years of experience in automating securities issuances and generating the required legal documents. We help you to set up appropriate governance processes, which ensure that green bond proceeds are actually invested in green projects. We assist in gathering the additional data to assess which assets are eligible for re-financing through green bonds. We support Treasury in integrating the management of green assets and liabilities into the overall steering processes of the banking book. Finally, we increase efficiency in your reporting processes.
Elevation of your ESG footprint within the supply chain
Leverage of your bargaining power in negotiations with vendors
Risk minimization in vendor selection and management
AI-methods enable cutting-edge data processing and calculation
Customized methodology based on your goals