Green bond of the year, bank: ING

Channels: Green Bonds

Companies: ING Group, Bank of America Merrill Lynch, Credit Agricole CIB, Credit Suisse, ING, SEB, Standard Chartered, Fitch, Moody's, S&P Global, ISS-oekom, Navigant, CFP

Deal highlights:

Issuer: ING Group

Size: $2.9 billion

Maturity: January 2026 and November 2030 (two tranches)

Coupon: 2.5% (€ tranche); 4.625% ($ tranche)

Use of proceeds: Green loan portfolio of new and existing loans for renewable energy and green buildings

External review: ISS-oekom

Lead managers: Bank of America Merrill Lynch; Credit Agricole CIB; Credit Suisse; ING; SEB; Standard Chartered

Credit rating: Fitch (A+); Moody's (Baa1); S&P Global (A-)

Other highlights/notable features: Helped ING become the largest Europe-based financial institution issuer of green bonds

ING Group's dual-tranche green bond raised a total of $2.9 billion, helping make it the largest Europe-based financial institution issuer of green bonds to date.

The dual-currency transaction consisted of a €1.5 billion ($1.7 billion) tranche and a $1.25 billion offering. The larger, euro-denominated tranche will mature in November 2030, and bear a coupon of 2.5%, while the dollar-denominated tranche matures in January 2026 and pays 4.625%.

It is also the company's first green 'HoldCo' transaction, with the bond issued by ING Group rather than the bank. ING Bank's first green bond was issued in November 2015, raising $800 million and €500 million in two tranches.

Proceeds from ING Group's bond will fund a portfolio of new and existing green loans for renewable energy and green buildings.

ISS-oekom confirmed the green bond aligned with the Green Bond Principles 2018. The deal received pre-issuance Climate Bonds Initiative certification. A pre-issuance impact report by external consultants Navigant and CFP found that ING's green loan portfolio avoided emissions of 4.2 megatonnes of carbon dioxide equivalent (CO2e) in 2018, or an average 1.5kg CO2e per euro invested.

Judges praised the green bond for helping ING pursue its environmental strategy – which includes a goal to procure 100% renewable electricity by 2020 for all its buildings worldwide – adding that the deal can help ING "steer its whole lending portfolio to a well-below 2°C scenario using science-based targets. [Its framework contains] green projects we consider having an appropriate level of certification and appropriate impact key performance indicators".

Another judge added: "Great to see this issuance at scale, which can then support so many different investments."