First in Russia: MKB raises international ESG KPI-linked syndicated loan

13.10.2021

 

MKB has signed a 2-year up to USD 300 mln syndicated loan agreement.

A distinctive feature of the new agreement is that it integrates the bank’s sustainable development performance (Sustainability-Linked Loan). MKB has become the first Russian financial institution to arrange this type of borrowing. Earlier the bank was among the first ones to raise two interbank loans linked to ESG rating.

Jointly with ING BANK N.V., who acted as the facility and ESG coordinator and the Facility and documentation agent, the deal was structured around 3 sustainability KPIs covering various business processes. Those KPIs are an expansion of sustainable financing, reduction of electricity consumption, and certification of the currently deployed integrated management system under ISO 14001, ISO 45001, and ISO 50001. All the KPIs are fully in line with MKB's Sustainable Development Strategy adopted in July 2021.

This borrowing also meets all international principles of syndicated ESG lending, while its structure with clearly formulated KPIs and annual verification is comfortable to all its participants committed to the ESG principles.

"MKB is consistently incorporating ESG principles in all its business processes. The bank was the first in Russia to get an ESG rating from an international agency. This syndicated loan brings our ESG strategy one more step forward, showing to our international partners that the bank's ESG goals in their realization are transparent, eco-friendly and remain a priority," underlined Julia Titova, First Vice President of MKB.

"ING is honored and very pleased to be part of this landmark transaction that sets new standards and opportunities for the Russian FI sector. Sustainability-linked finance is on top of ING’s agenda when it comes to everything the bank does globally to support the transition to net-zero climate goals. More and more Russian companies integrate their sustainability-linked financing into their overall ESG agenda. And I’d like to congratulate MKB with being the first Russian financial institution that successfully stepped into this both very promising and responsible business," – commented Mikhail Chaikin, General Director of ING BANK (EURASIA).

ING BANK, Citi, HSBC and ROSBANK acted as mandated lead arrangers and bookrunners, while Banca Intesa, Crédit Agricole and RAIFFEISENBANK acted as mandated lead arrangers.