17 May 2021
Investec structures pioneering ESG-linked NAV facility for Bluewater
Investec Bank plc (“Investec”) has structured a pioneering ESG-linked NAV product for Bluewater to support the expansion of its portfolio. The facility is thought to be the first of its kind in Europe.
Building on its long-term relationship with Bluewater, Investec’s Fund Solutions team arranged and underwrote the agreement, structuring it to offer reduced interest payments when specific ESG goals are met, with the cost savings to be ring-fenced for further ESG initiatives.
The facility will enable Bluewater to move quickly on opportunities, which will maximise returns for the fund. It was also implemented within a framework that easily allows for additional capital to be committed over time as required. By overlaying an ESG element, the facility aims to encourage Bluewater to further increase their ESG credentials.
Michael Zornitta of Investec’s Fund Solutions team commented: “This NAV secured facility enables Bluewater to realise its pipeline of opportunities and expand its important work in the energy sector. We think it’s the first of its kind in the EU; the agreement aligns with both parties’ ESG values and enables Bluewater to reinvest into its own ESG initiatives. It also signifies Investec’s ability to be creative and flexible, reflecting our deep abilities in the NAV financing space, and represents our own commitment to ESG.”
Tanya Dos Santos, Global Head of Sustainability at Investec, continued: “Bluewater has a vital role to play in supporting the energy transition and creating a lower carbon world. This aligns with Investec’s commitment to addressing climate change and is an example of our commitment to partner with clients to address socio-economic issues and create a more sustainable world.”
Bluewater’s team of experienced investment professionals have been helping energy companies grow for over 25 years, and the firm has a strict ESG policy in place for the management of the fund.
Investec has a strongly embedded commitment to sustainability and ESG matters based on our deeply held belief that we live in society, not off it. Investec CEO, Fani Titi is one of 30 global leaders that make up the CEO Alliance of the United Nations Global Investors for Sustainable Development who aim to accelerate action to scale up sustainable investment globally.
Cadwalader, Wickersham & Taft acted as legal advisor to Investec and Debevoise & Plimpton LLP acted as legal advisor to Bluewater.
Investec partners with private, institutional and corporate clients, offering international banking, investment and wealth management services in two principal markets, South Africa and the UK, as well as certain other countries. The group was established in 1974 and currently has approximately 8 500 employees. Investec has a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. Investec’s current market capitalisation is approximately £2.0 billion.
This press release is issued on behalf of Investec Bank plc. Registered address: 30 Gresham Street, London, EC2V 7QP. (Reg No. 489604).
Investec Bank plc (Reg. no. 489604) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.