Natwest, Enel in Green FX Initiative
Posted by Colin Lambert. Last updated: March 16, 2021
Renewables operator Enel has entered into sustainability-driven FX derivatives trades with Natwest Markets.
As part of the agreement, Enel could receive an agreed sustainability payment in recognition of delivering against the firm’s sustainability KPIs (Key Performance Indicators), which is linked to the volume of their hedging amount.
“This innovative framework means Enel can further pursue their Sustainability strategy and apply this to all foreign exchange derivatives,” says Fabio Madar, head of currencies at NatWest. “We’re pleased to have supported Enel with the first transaction we have executed of this kind, and it opens up a whole new framework to link ESG goals and sustainable financing in the FX market.”
Dr Arthur Krebbers, head of sustainable finance, corporates at Natwest, adds, “Innovation is of paramount importance to developing sustainable products that meet our customers’ financing needs. It’s fantastic to see how we can now offer FX ESG financing solutions to our customers, such as Enel, that also support their own sustainability strategy and targets.”
In late 2019, Siemens Gamesa Renewable Energy (SGRE) announced a similar initiative when it revealed it had arranged sustainable FX hedging contracts, totalling €174 million, with BNP Paribas.