Deutsche Bank offers a broad range of loan products covering e.g. bilateral credit, syndicated loans, and promotional lending
Loans can be structured with a clearly defined use of proceeds, or they can be for general corporate financing purposes (so called 'Revolving Credit Facilities')
With regards to our sustainable product offering the Loan Markets Associations (LMA) acts as a rule maker within the respective markets by establishing some commonly accepted frameworks like the LMA Green Loan Principles or the LMA Sustainability Linked Loan
Bonds
Our debt syndicate experts manage new issuance in investment grade debt, high yield, loan capital markets and private placements for corporate, financial institutions, sovereign, supranational, agency and emerging market issuers
Deutsche Bank has built a world-class leveraged franchise business that combines a premier high yield bond market business with diverse debt financing capabilities
Similar to the loan market there are some internationally recognized standards when it comes to Green or Sustainability-Linked Bonds, such as the International Capital Markets Association Green and Social Bond Principles and the Sustainability Linked Bond Principles
How to link your sustainability effort with our products
Ring-fenced sustainable transactions
Proceeds from the transaction are dedicated to a specific purpose, which clearly meets sustainability criteria as per internationally recognized taxonomies
Relevant examples of taxonomies are the EU Taxonomy for Sustainable Activities, the Green & Social Bond Principles by the ICMA as well as the Green & Social Loan Standards by the LMA, all of which are considered and combined in Deutsche Bank’s public Sustainable Finance Framework
A range of structures can be applied to ensure a robust monitoring of eligibility against Deutsche Bank’s Sustainable Finance Framework, hereby flexibly leveraging existing data sources
Inclusion of an ESG-linked incentive to the financing structure
The client is incentivised towards sustainable behaviour, e.g. via paying a favourable price upon strong sustainable performance or paying an extra penalty in case sustainability targets are not met
The charged margin becomes variable by inclusion of a covenant in the legal facility documentation. The actual pricing is determined by defined and measurable sustainability Key Performance Indicators (KPIs), e.g. CO2 emissions published in annual report or sourcing of energy from renewable resources
Due to this simple mechanism, the methodology can be applied to a broad range of our product offering
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