Question : Which of the following parties has executed World’s first green hedging transaction recently ?
(a) Deutsche Bank and Continuum Energy
(b) HSBC Bank and Adani Energy
(c) JPMogan Chase and Suzlon Energy
(d) None of the above
Ans.(a)
Related facts
- Deutsche Bank and Continuum Energy Levanter Pte Ltd, today(16 March 2021) announced they have executed the world’s first green hedging transaction with a second party opinion based on a specially designed green hedge framework.
- Deutsche Bank and Continuum has worked together to develop a green hedge framework to support the implementation of Continuum’s green bond framework.
- External reviewer, Cicero Green, issued the Second Party Opinion on the green bond and the green hedge frameworks.
- This hedge structure has the potential to set new standards for increased transparency and risk management particularly for Emerging Markets hard currency green bond issuances.
- The FX hedge solution is for a 6 years tenor in US dollars/Indian Rupees on notional of US$185 million, linked to Continuum’s green bond US dollar primary issuance and based on their green bond framework.
- Sustainability is a core pillar in Deutsche Bank’s transformation strategy and the bank is committed to supporting clients as they transition for the zero carbon economy.
- Last year in Asia Pacific Deutsche Bank structured Asia’s first currency hedge linked to sustainability key performance indicators.
- This hedge structure was assessed and approved against Deutsche Bank’s Sustainable Finance Framework.
By — Pankaj Pandey.