22 Nov 2022
Investec provides ESG-linked subscription facility for Investindustrial
Investec Bank plc (“Investec”) has provided a €600m ESG-linked facility to Investindustrial, a leading European investment group, in respect of Investindustrial Fund VII. The facility is one of the first European mid-market ESG-linked subscription lines.
Investec is the Arranger and Sustainability Coordinator of the €600 million facility, which is backed by a syndicate including State Street Corporation and Banca Intesa Sanpaolo. The facility has been structured so that it offers reduced interest payments when specific ESG goals – in areas such as environment, gender diversity and governance – are met.
Any interest cost savings will be ring-fenced by Investindustrial for investments in carbon reduction initiatives, including the continued development of its portfolio of nature-based carbon reduction projects.
Jonathan Harvey, Head of Relationship Management - Fund Solutions at Investec, commented:
“This facility provides strong incentives for Investindustrial to continue the impressive work it is doing to further its contribution to sustainable investment. It also highlights our own strength in arranging innovative products and structures in even the most commoditised part of the fund finance market.”
Tanya Dos Santos, Global Head of Sustainability at Investec, continued:
“Partnering with our clients and incentivizing them to be more responsible and impactful is a critical element of our sustainability strategy. We see the Investindustrial transaction as a significant step in using our financial expertise to address socio-economic issues and create a more sustainable world.”
Investindustrial was certified a B Corp™ earlier this year whereby it received the highest score awarded to any private equity buyout firm. 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.
Travers Smith LLP acted as legal advisor to Investec and Kirkland & Ellis LLP acted as legal advisor to Investindustrial.
For further information please contact:
Luke O’Mahony, Investec (Public Relations)
020 7597 5261
Investec partners with private, institutional and corporate clients to offer international banking, investments 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 8,300 employees. In 2002, Investec implemented a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. In March 2020, the Asset Management business was demerged and separately listed as Ninety One.
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.