Climate, ESG and Sustainable Finance for Financial Institutions

Rates, currencies and certain financing products are provided by NatWest Markets Plc in the UK and by NatWest Markets NV in the EU. For more information please visit our ring-fencing page. Finance is subject to status. Security may be required. Product fees may apply.

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About us

We offer Climate and ESG solutions and advice to guide Financial Institutions through the development and implementation of their sustainable finance strategies.

We are a specialist team with capabilities in ESG advisory and sustainable finance for banks, building societies, insurance companies and asset managers. We help our customers further embed sustainability considerations into their business models, develop their sustainable financing strategies, and connect with the global community of ESG investors. We also advise our customers on improving their ESG ratings and sustainability performance and navigating an increasingly complex ESG policy and regulatory landscape.

Our services include: structuring Green, Social, Sustainability and Sustainability-Linked Financing Frameworks (GSS/S Frameworks), developing and assessing key Performance Indicators (KPIs) for sustainability-linked transactions (e.g. loans, FX), advising on ESG ratings and disclosures. Our capabilities extend across different asset classes (e.g. securitisation, covered bonds, senior bonds, subordinated bonds, commercial paper, loans) and currencies (e.g. GBP, EUR, USD) in both public and private markets.

How we could support your institution

We have assisted numerous Financial Institutions (“FIs”) with a wide range of sustainability-labelled transactions, celebrating many market ‘firsts’.

We’ve maintained our position as a leading green, social and sustainability and sustainability-linked (GSS/S) debt book runner in our chosen markets and geographies ranking number one lead manager for UK Financial Institutions Group and UK corporate GSS/S debt issuance.

We were also named “Lead manager of the year, social bonds – financial institutions’ at the 2023 Environmental Finance Bond Awards.

Financial Institutions Group includes banks, insurance companies, real estate, funds and trusts and other investment entities. (3) Source: Dealogic, 31 December 2022 – excludes money market and short-term debt. GSS/S – Green, Social, Sustainability and Sustainability-linked.

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Our work

We have assisted numerous Financial Institutions (“FIs”) with a wide range of sustainability-labelled transactions, celebrating many market ‘firsts’.

We were also named “Lead manager of the year, social bonds – financial institutions’ at the 2023 Environmental Finance Bond Awards.

[1] Financial Institutions Group includes banks, insurance companies, real estate, funds and trusts and other investment entities. (3) Source: Dealogic, 31 December 2022 – excludes money market and short-term debt. GSS/S – Green, Social, Sustainability and Sustainability-linked.

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Product Innovation and Partnership

Product innovation and partnership is at the centre of our philosophy as we work with our customers to develop meaningful new sustainable finance products and solutions. This includes exploring new areas such as impact underwriting and finding new ways for financial institutions to incorporate their sustainability KPIs into financial instruments, for example through ESG-linked FX.

Our team works closely with Content & Sector Coverage, Primary Capital Markets, Syndicate, Capital Solutions, ESG Ratings Advisory, Legal and other in-house specialists to support FIs with their sustainability journeys.

Our customers

We are proud to have supported numerous customers with a wide range of ESG transactions. You can read in more detail about how we have helped our Financial Institution and Private Finance customers on our Case Studies page. You can also see recent examples of our work below:

Deutsche Kreditbank (DKB) AG

Deutsche Kreditbank AG

Looking to issue the first-ever benchmark social mortgage-backed covered bond (“Pfandbrief”) from Germany, Deutsche Kreditbank AG turned to NatWest to support the debut in the role of Joint Lead Manager. The “Berlin Social Housing” mortgage Pfandbrief saw strong momentum right after order books opened, with demand peaking at over €2.5 billion in a very short time, allowing DKB to price the notes at MS+3 basis points.

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Yorkshire Building Society

ING

Looking to issue its first Green Senior HoldCo bond for 2022, ING asked NatWest to support the transaction in the role of Joint Bookrunner. On the back of an order volume above €2.8 billion, the deal team tightened the spread from IPTs of M/S+135bps to M/S+110bps (the #) 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%.

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Insights

Furthermore, we also support our research teams in providing ESG insights and content that aligns with our customers’ needs and challenges. You can find ESG content on our dedicated Sustainability Insights page or on Agile Markets. Some recent examples of our insights include: