DGAP-News: ProCredit Holding AG & Co. KGaA / Key word(s): Agreement/Miscellaneous
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ProCredit Holding has agreed to place Green Bonds totalling USD 90 million with the International Finance Corporation
- Planned issue volume to be placed with the International Finance Corporation in two tranches of three-year bonds
- Proceeds of the issue will be specifically earmarked for financing investments by SMEs in energy efficiency, renewable energy and environmentally friendly measures
- ProCredit Holding anticipates that this Green Bond issue will be followed by further placements of a similar type and scale to private investors
As far as ProCredit Holding and IFC are aware, this will be the first time in the German market that a financial institution has issued Green Bonds specifically for the purpose of financing "green" investments by SMEs in emerging economies. The Green Bonds are expected to be placed in the second and third quarters of 2019.
In making this commitment, IFC aims - via the ProCredit banks - to open up new options for SMEs to finance environmentally friendly investments. An equally important aim is to support the transition from high-carbon to low-carbon economies in the ProCredit group's countries of operation.
In this context, with their focus on SMEs, the ProCredit banks are making a valuable contribution to ecologically responsible economic development in their respective countries. For this reason, IFC regards the ProCredit group as an important partner in its efforts to increase access to "green finance" for SMEs.
Providing finance for "green" investments is a fast-growing part of the ProCredit group's development-oriented business model. Its portfolio of "green" loans amounted to roughly EUR 678 million as of 31 December 2018, accounting for 15.4% of the group's total loan portfolio. In 2018 alone, the "green" loan portfolio of the group grew by 39%. In the medium term, the group aims to raise the share of "green" loans in its total portfolio to 20%.
The Green Bonds will not be offered to the public, and at the time of placement they will not be listed on a stock exchange. The issue of the Green Bonds is subject to the guidelines set forth in the ProCredit group's Green Bond Framework which is in line with the International Capital Market Association's Green Bond Principles 2018 as confirmed by Sustainalytics in a second party opinion on 3 October 2018.
For its own business activities, the ProCredit group also sets ambitious sustainability targets. Among its medium-term objectives, the group aims to conduct its business on a carbon-neutral basis. The ProCredit group also plans to continue investing in staff training in order to raise the already high level of social and ecological responsibility felt by its employees. This is seen as a key factor in further strengthening ProCredit's commitment to responsible banking. More information on the ProCredit group's sustainability projects and commitment to the Sustainable Development Goals can be found in its comprehensive Impact Report, which can be downloaded from the ProCredit Holding website.
About ProCredit Holding AG & Co. KGaA
08.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||ProCredit Holding AG & Co. KGaA|
|60486 Frankfurt am Main|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange|
|EQS News ID:||808297|
|End of News||DGAP News Service|