NIBC brings the first CLO fully compliant with ESG best practicesNorth Westerly VI - ESG compliance (.pdf) 19 Nov 2019
News Release -
NIBC bank is pleased to announce being the first to successfully issue a collateralized loan obligation fund (CLO) compliant with the best practices of ESG investing. NIBC’s North Westerly VI B.V. of EUR 410 million is placed via MUFG Securities EMEA.
This is our sixth CLO of the NIBC’s North Westerly platform. With this fully ESG (environmental, social and governance) compliant CLO, NIBC further builds upon its ambition to be a corporate sustainability leader and to have an entrepreneurial and inventive approach in how we do business in today’s rapidly changing markets. Sustainability is fully embedded in NIBC’s business strategy and decision making and we help our clients to face today’s sustainability challenges, to innovate and grow, and to tap the most promising opportunities in their markets.
Herman Guelovani, Head of Credit Management at NIBC Bank:
“The CLO applies ESG criteria for socially responsible investments which prevents the fund from investing in controversial sectors (such as coal power and mining, extreme fossil fuels, weapons and firearms, tobacco, gambling among others) and adheres to NIBC’s robust sustainability framework and policies. NIBC ensures this through pre-investment screening, borrower/transaction due diligence, NIBC’s internal assessments, monitoring and review processes. We provide transparency through detailed investor reporting and analysis: the CLO will report the portfolio composition from an ESG perspective to its investors quarterly.”
Caroline Oosterbaan, member of the Executive Committee of NIBC Bank:
"We are proud to be the first bank to issue a fully ESG compliant CLO. With this placement, NIBC proves to be at the forefront of developing innovative sustainable banking products and integrating ESG guidelines into our bespoke financing solutions. This is definitely the sort of transaction that we will see more and more in the future. NIBC is strongly rooted in its obligations towards society and is committed to reducing negative impacts on the environment in our business activities and helping clients in their transition towards more sustainable practices.”
North Westerly VI B.V was priced and placed with a syndicate of leading international institutional investors. NIBC Bank N.V. acts as a Collateral Manager for this actively managed CLO, which will invest in syndicated leveraged and corporate loans. The transaction was arranged and placed by MUFG Securities EMEA. North Westerly VI B.V. will be listed on Euronext Dublin.
Click here or open the attached PDF for more details on North Westerly VI - ESG compliance and CLO investment approach.