BNP Paribas today announced the closure of a green loan to support the delivery of Vena Energy’s $120 million Wandoan South battery project in Australia, the first project financing of a Battery Energy Storage System (BESS) in the Asia Pacific region. As battery storage becomes commercially bankable, it is expected to accelerate the penetration of renewable energy and the energy transition in Australia.

The move signals a major shift in the types of financing available for much-needed battery storage projects in Australia and could pave the way for future collaboration between energy market players. With an offtake agreement already in place with AGL Energy, Vena Energy’s Wandoan South BESS is one of the largest utility scale battery projects currently being developed in Australia and the largest in Queensland. Upon completion, it is expected to be capable of discharging up to 100 megawatts (MW) and storing 150 megawatt hours (MWh) of energy, equivalent to powering up to 57,000 Australian homes.

“We believe project finance could become increasingly important in the delivery of battery projects across Australia. The cooperation between AGL Energy as the offtaker and Vena Energy as the integrated developer, owner and maintainer has meant that banks have more confidence around future cashflows from this project, allowing us to take a more direct role in speeding up the energy transition,” said Karine Delvallée, Head of Territory Australia and New Zealand.

BNP Paribas acted as the sole Green Loan coordinator for this project finance facility. The Wandoan South BESS is the first battery energy storage system to be financed on a non-recourse basis in Asia Pacific, and meets the criteria of ‘Green Financing’ as aligned with the Green Loan Principles[1]. BNP Paribas will support the financing of the battery from development to operation, and has also been appointed Account Bank, Agency and Security Trustee.

[1] The Green Loan Principles were introduced by the Loan Market Association and Asia Pacific Loan Market Association in March 2018.

The Bank has developed a KPI matrix under the framework to incentivise clients who meet key performance indicators in responsible sourcing and procuring

BNP Paribas is piloting a framework to promote sustainable practices in corporate supply chains under the aegis of the Green and Sustainability Linked Loan Grant Scheme announced by the Monetary Authority of Singapore today.

The Bank’s framework aims to engage with large MNCs and their extensive supply chains to adopt more sustainable practices. It is the first of its kind in Singapore and a significant step toward supporting clients in their efforts to achieve more responsible sourcing and procuring.

Joris Dierckx, CEO of BNP Paribas Singapore, said, “Singapore is Asia’s top logistics hub offering world-class connectivity. With the unprecedented boom in regional cross-border trade and with the challenges that Covid-19 has brought to the supply chain network, we believe that it is crucial for banks to increase their efforts to help clients incorporate sustainable supply chain practices. Banks that pioneer best practices in this area can help to facilitate a cascade of positive change that will flow throughout supply chain and global trade networks.”

Incorporating sustainability into supply chain operations is highly complex and the Bank’s Sustainable Supply Chain Finance Framework is designed to encourage clients to innovate and adopt sustainable practices. At the heart of the framework is a KPI matrix that measures the sustainability performance of corporates in their supply chain processes, and provides corporates with more favourable terms based on their sustainability performance.

With green and sustainable finance activities growing in Singapore, building on industry capabilities will help to bring green financing and sustainability-linked loans into the mainstream. Through the framework, which has been reviewed by V.E, an Affiliate of Moody’s, BNP Paribas will support corporates in meeting sustainability targets aligned to the UN Sustainable Development Goals.”

Press Contact

Pamela Chew         pamela.chew@asia.bnpparibas.com          +65 6210 1291

BNP Paribas today announced that Paul Yang will become Head of Asia Pacific (APAC), in addition to his role as CEO of Corporate and Institutional Banking (CIB) APAC, succeeding Eric Raynaud from December 1, 2020.

Mr Raynaud will retire from BNP Paribas in December, after a more than 40-year career in banking including more than half of that time in Asia.

“Over the last 10 years, Eric successfully drove the Group activities in the APAC Region, and considerably developed our presence while consolidating our business franchises. I wish him all the best for his personal future,” said BNP Paribas CEO Jean-Laurent Bonnafé. “I have great confidence in Paul to achieve new successes in the region, leveraging on the solid foundations that we have built in Asia Pacific and strengthened under Eric’s leadership.”

With more than 30 years’ experience at BNP Paribas in senior executive roles in France and Asia, Mr Yang is well-placed to continue developing the APAC franchise and enabling clients to grow their own businesses in the fast-changing region. In his expanded role, Mr Yang, will oversee all the Group’s activities in APAC, whilst continuing to act as CEO of CIB Asia Pacific. His extensive knowledge of the region, combined with a diversified experience coupled with the long-planned transition, will ensure strong continuity of service for clients.

Paul Yang’s biography can be found here.

 

Press contact:
Ayesha de Kretser    +852 5239 8017 ayesha.dekretser@asia.bnpparibas.com
Kristen Carter         +852 2909 8821 kristen.carter@asia.bnpparibas.com
Ruby Lo                  +852 2909 8847 ruby.y.lo@asia.bnpparibas.com

BNP Paribas is pleased to support the Monetary Authority of Singapore in its efforts to establish a centre of excellence for green financing. Joris Dierckx, CEO of BNP Paribas Singapore, said, “BNP Paribas is delighted to be a founding partner of the Singapore Green Finance Centre (SGFC), which brings together academia and industry. SGFC will firmly place Singapore at the leading edge of innovation in green finance, playing a vital role in catalysing sustainable and green finance in the region.

At the heart of BNP Paribas’ business is a commitment to build a more balanced and sustainable world. For almost 18 years – since it launched its first socially responsible investment fund in 2002 – the Bank has been supporting clients in implementing projects that make a positive societal and ecological impact. As at end-2019, BNP Paribas has devoted €180 billion to energy transition and the achievement of the United Nations Sustainability Development Goals. The Bank has also received industry recognition as a market leader in the sustainability-linked loans (SLL) market, participating in 56 different SLLs from July 2019 to July 2020, acting as a lead on sustainability discussions in 14 of those transactions.

 BNP Paribas looks forward to co-creating solutions in a unique cross-sector initiative backed by strong regulatory support. The Bank will contribute to the SGFC in the areas of transition financing, taxonomy, finance and natural capital, as well as carbon accounting and disclosure. “We recognise that, as a Bank, we are at heart of the economy and have a unique opportunity to accelerate the financing of a more sustainable and inclusive future. In becoming a Founding Partner of the SGFC, we look forward to bringing our expertise as a leader in sustainable finance to the working groups and to participating in research co-creation projects,” Mr Dierckx said.

In Southeast Asia, transition financing for energy clients is a key priority for the Bank as it works toward its zero coal financing goal by 2030. Earlier this year, BNP Paribas issued equity-linked green bonds totalling A$140 million on the Australian Climate Transition Index – Australia’s first forward-looking climate index, which was jointly developed by BNP Paribas and ClimateWorks Australia. In recent years, BNP Paribas has been honoured with awards for its sustainability efforts. This year, the Bank has been named “Most ESG Responsible International Bank” and “Investment Bank of the Year for Sustainability-Linked Loans”.

Press Contact

Pamela Chew         pamela.chew@asia.bnpparibas.com          +65 6210 1291

The platform, known as Trusple, promises to make global trade finance faster, safer and more efficient

Ant Group today announced the launch of Trusple, a digital international trade and financial platform powered by blockchain technology. BNP Paribas, as one of the strategic banking partners of this initiative, will strengthen the access of Small to Medium Enterprises (SMEs) to international trade, and push forward the inspiration of making it easy to do business anywhere.

Ant Group made the announcement at the Blockchain Industry Summit of INCLUSION Fintech Conference in Shanghai.

Paul Yang, Head of Corporate and Institutional Banking for Asia Pacific at BNP Paribas, said: “BNP Paribas is committed to facilitating global digital trade. Being selected as one of the strategic partners of Ant Group, a world-leading technology service provider, marks a significant milestone in our ability to deliver the most advanced technology to our clients and push the boundaries in the financial digital ecosystem connecting China and France.”

“We are committed to developing cross-border financial technology solutions that give business clients the tools they need to thrive in a digital era,” said Mr Yang.

CG Lai, CEO of BNP Paribas (China) Limited, said: “As a leading foreign-invested bank in China, we can draw extensive banking experience from BNP Paribas’ global set-up. Leveraging Ant Group’s innovation and business scale rooted in the China market, our partnership is set to bring value to the real economy and build a better future for all.”

Trusple is designed to make international trade more reliable, more transparent, as well as more efficient for SMEs. Trusple manages orders digitally, doing away with much of the paperwork involved in traditional trade while enabling better shipping management and payment processes. The transparent and traceable nature of blockchain technology ensures the authenticity of entries and order, strengthening record-keeping and risk management for financial institutions and SMEs around the world.

The partnership taps into BNP Paribas’ existing solid financial digital ecosystem, which is underpinned by its extensive global networks and a strong heritage of cross-region financial expertise. The introduction of Trusple is an important step to build France-China trade flows.

Press Contacts:
Kristen Carter +852 6400 3291 kristen.carter@asia.bnpparibas.com
Jackie Wang +86 21 2896 2960 jackiez.wang@asia.bnpparibas.com

BNP Paribas today announced the successful issuance of a series of equity-linked green bonds totaling A$140million, subscribed by the Clean Energy Finance Corporation (CEFC), First State Super (soon to be renamed Aware Super) and QBE Insurance (QBE). The bonds are linked to the first forward-looking climate index in Australia, the Australian Climate Transition Index (ACT Index) and the proceeds will be used to invest in a portfolio of green projects.

The ACT Index uses five “dynamic” climate scenarios, which will continue to be adjusted to reflect future regulatory, technology and social environmental changes. It was jointly developed by BNP Paribas with ClimateWorks Australia, ISS ESG and The Centre for Quantitative Finance and Investment Strategies at Monash University. The index seeks to identify companies likely to perform well in a world undergoing a 2°C transition and to continue to play a part of the Australian economy in a 2°C future. This includes 100 Australian companies that will support the transition, adapt and thrive, or be least affected by the expected changes.

Pascal Fischer, Head of Global Markets for Asia Pacific at BNP Paribas said: “Having the long-term support of these three major Australian investors indicates a clear willingness and readiness for action among critical sectors in Australia. We are pleased to support climate transition efforts in Australia and bring our European expertise to the development of this innovative climate index.”

Anna Skarbek, CEO of ClimateWorks Australia said: “This project draws on our research and modelling of dynamic climate transition scenarios, developed for our recently published Decarbonisation Futures report. The index uses a forward-looking approach, recognising that it is the future transition pathways that matter most to stabilising climate change. We are pleased that this index now enables investors and Australian companies to align their strategies with evidence-based climate transitions.”

Ian Learmonth, CEO of the CEFC said: “The ACT Index is an exciting market leading development, mobilising the increasing scale of impact investment to benefit Australian companies leading the emissions transition. As the first forward-looking index in the Australian market, it gives investors the capacity to analyze the climate risk profile of their ASX portfolios. At the same time, it gives emissions-focused companies access to a greater pool of capital, a powerful incentive to accelerate decarbonisation efforts.”

Liza McDonald, Head of Responsible Investments at First State Super said: “Our research shows that climate change poses one of the most significant long-term risks to our portfolio; and our members’ long-term financial future. As Australia’s second-largest industry super fund, we have committed to taking real and meaningful action to respond to climate change and ensure we continue to deliver strong long-term returns for our members, while supporting our community to prepare for a low-carbon future. The ACT index is an exciting and innovative initiative that we believe will help to deliver the sort of change we need now to secure a more sustainable financial future.”

James Pearson, Head of Impact and Responsible Investments for QBE Insurance said: “As an international insurer, we well appreciate the material risk that climate change presents for our customers and our business and the importance of supporting the transition to a lower carbon economy. This investment fits well with our efforts to support that transition and we look forward to applying the index methodology for our own investment purposes, in the future.”

Marija Kramer, Head of ISS ESG said: “We are delighted to contribute to this innovative project by providing ISS ESG’s market-leading data and analysis, in the context of the dynamic climate transition scenarios, to determine the extent to which Australian companies are prepared to transition to a low carbon economy, and to the mitigation approach related to these transition risks and opportunities.”

Press contact: 
Kristen Carter     +852 6400 3291   Kristen.Carter@asia.bnpparibas.com

BNP Paribas Securities Services, a leading global custodian, has appointed Franck Dubois as Regional Head of Asia Pacific, effective 1 September 2020.

In his new role, Mr Dubois will continue to expand the BNP Paribas Securities Services’ business in Asia Pacific, where it has achieved an average yearly increase of +18% in assets under custody over the last six years. Having won a number of significant mandates in recent years, BNP Paribas has established itself as a fast-growing and innovative market leader in the region.

Paul Yang, CEO of CIB Asia Pacific at BNP Paribas, said: “With Franck’s deep industry knowledge, we are confident that our business will continue to grow for our clients across Asia Pacific. Franck brings with him direct experience from our biggest markets in Europe, as well as knowledge of the local environment having previously worked in Hong Kong.”

Alessandro Gioffreda, Global Head of Territory Management at BNP Paribas Securities Services, said: “Franck brings a wealth of client and operations experience to this important role in charge of one of our fastest-growing regions. Under his leadership, we intend to continue to grow our business in Asia Pacific, positioning ourselves as a long-term partner to our clients and accompanying them in their domestic and international development.”

A securities services industry expert, Mr Dubois has held a range of senior roles within the bank’s Corporate and Institutional Banking (CIB) and Securities Services businesses in Asia Pacific and Europe. He was most recently Head of France and Belgium for Securities Services.

Mr Dubois will be based in Hong Kong and will report regionally to Mr Yang and globally to Mr Gioffreda.

Press contact

Kristen Carter   +852 2909 8821   kristen.carter@asia.bnpparibas.com

  • A direct support plan, activated in over 30 countries including in Asia, bringing the Group’s financial commitment to over €50 million
  • Local support for hospitals, vulnerable populations and young people around the world

BNP Paribas and its subsidiaries have expanded support for communities impacted by the Covid-19 pandemic, with the Group raising its financial commitment to its emergency support plan to more than €50 million (around US$55 million) to help countries including China, India and Indonesia.

The funds overall will have a direct impact on hospital systems, medical research and institutions that help the most vulnerable amongst us and disadvantaged young people. Actions in aid of communities are the priority of our emergency support plan, especially when deployed in the field, in support of medical professionals, NGOs and social services support associations that fight every day to seek solutions to this healthcare and social crisis.

In Asia, BNP Paribas made donations to existing NGO partners in China in February to purchase equipment for frontline medical workers in Hubei province. In the coming weeks, the Bank would channel donations directly to initiatives and hospitals in Jakarta, Indonesia and in the Indian cities of Mumbai and Chennai to combat Covid-19, protect medical staff and try to save lives.

“In addition to funds directed to China earlier this year, we will expand our donation in Asia Pacific to around €1.5 million, targeting initiatives and hospitals in India and Indonesia where we expect the risks associated with Covid-19 to remain high and where we hope to help more people in need,” said BNP Paribas Head of Asia Pacific Eric Raynaud.

“Our 18,000 staff in this region can also donate to support NGO CARE-INTERNATIONAL’s efforts to fight Covid-19 and support health in heavily impacted areas globally through our Rescue & Recover Fund, through which employee donations will be matched 100% by BNP Paribas Group.”

BNP Paribas’ teams, with a strong local presence, have already provided support on a number of fronts, including through grants to numerous local NGOs in Asia, Europe and Africa, various bank and insurance solidarity funds, and research via the Pasteur Institute in France. The various actions have so far amounted to €25m, in addition to many other kinds of contributions, including the donation of 3 million masks to hospitals across Europe.

To strengthen its support in the face of the health crisis, BNP Paribas has now launched a new emergency support plan that brings the Group’s financial commitment to over €50m. The plan will be implemented via actions identified by BNP Paribas’ teams across the various regions the Group is present in, and adapted to specific local needs. It aims to help hospitals and vulnerable populations across 30 countries. In India and Indonesia, funds will be directed to hospitals in Jakarta, Mumbai and Chennai. These actions are supplemented throughout the world by volunteering engagements by BNP Paribas employees who, in their working hours, make themselves available to support associations mobilised to face the crisis.

Press contacts
Kristen Carter: +852 6400 3291 – Kristen.Carter@asia.bnpparibas.com

The Barrow Hanley Global Equity Trust (‘Trust’), distributed in Australia and New Zealand by BNP Paribas Asset Management (‘BNPP AM’), has received ‘Recommended’ ratings from Zenith (Nov 2019) and Lonsec (Jan 2020) as adviser interest in the strategy continues to grow.

The Lonsec and Zenith reports both highlight the experience of the investment professionals at Barrow,

Hanley, Mewhinney & Strauss (‘Barrow Hanley’), and note that the well-established investment firm has been in operation since 1979. Lonsec in particular notes the disciplined and robust valuation process with a key focus on downside risks.

It is the adherence to their ‘traditional value’ style and commitment to downside protection and bottom-up stock research that has enabled the Trust to maintain pace with global equity markets despite a difficult period for value investing.

Commenting on the positive Trust ratings, BNP Paribas Asset Management Australia Chief Executive Officer David Grybas commented “It is pleasing to see the research community recognising Barrow Hanley’s outstanding investment team and disciplined approach. We believe their ‘traditional value’ approach is particularly suited to clients given their ability to participate in expansionary economic cycles, while also protecting assets in down markets through risk control and yield”.

Mr Grybas also referenced the growth in BNP Paribas Asset Management’s adviser-facing business with strong inflows across the three global equity strategies offered to Australian and New Zealand investors. This has resulted in the expansion of the wholesale distribution team, with the addition of two new hires in recent months.

The Trust is an Australian domiciled investment vehicle available to both Australian and New Zealand investors. The minimum investment amount is AUD 25,000.

In addition to global value equities, BNP Paribas Asset Management offers a range of investment solutions including global growth and environmental equities to Australian and New Zealand advisory clients. As at 31 December 2019, BNP PARIBAS ASSET MANAGEMENT Australia Limited had assets under management of over AUD 10 billion.

PRESS CONTACTS
BNP Paribas Asset Management

Frances Powell
Head of Marketing
+61 2 9619 6710
frances.powell@au.bnpparibas.com

Renée Kaesler
Brand and Communications Manager
+61 2 9619 6225
renee.kaesler@au.bnpparibas.com

52% seek closer collaboration with technology or IT departments

A BNP Paribas Securities Services global survey released today shows that chief operating officers (COOs) are more focused than ever on growth and transformation, reflecting financial institutions’ drive to adapt to change. In APAC the trend towards transformation was most pronounced, with 56% of COOs feeling that one of the areas in which their work adds the most value is delivering transformation or significant change projects, compared with a global average of just 39% of COOs who said the same.

Key findings – overall:

  • While risk management remains a key part of the role (cited by 42% of respondents), COOs said that driving growth opportunities, including new products and services (52%), and delivering transformational and significant change projects (39%), have become essential.
  • This trend is particularly marked in APAC where 56% of COOs ranked transformation as their top priority (vs. 26% in North America).
  • COOs overwhelmingly recognise the role IT has to play in driving transformation. 68% of COOs say they collaborate closely or very closely with IT. 38% say they want greater collaboration with technology and IT departments.
  • COOs globally recognise that they cannot simply rely on technology alone. Asked what could help drive transformation projects and business growth, 67% of COOs said upskilling the workforce while 60% said spending time with clients.

Key findings – Asia Pacific:

  • Over two-thirds (68%) of APAC COOs want a different title – with “Chief Change Officer” the preferred alternative.
  • 52% of APAC respondents said they wanted closer collaboration with technology and IT departments.
  • 37% of APAC COOs have technology or IT teams reporting to them, compared with 24% of COOs globally.
  • 62% of APAC COOs think change projects will become one of the areas they spend most of their time.

Key findings – buy-side:

Highlighting the increasing competition and ongoing digital transformation in the asset management industry:

  • 63% of asset manager COOs cited increased competition in the market as a key challenge.
  • 59% of asset manager COOs said they saw themselves spending more time on delivering change projects in future (vs. 43% overall). Nearly a quarter (24%) would prefer to be called chief change officer (vs. 10% overall).
  • 61% of asset manager COOs said they were looking for closer collaboration with IT or technology departments (vs. 38% overall). Furthermore, asset manager COOs were most likely to come from technology or IT backgrounds (35%), whereas COOs across financial services were more likely to come from finance or accounting backgrounds.

Key findings – sell-side:

COOs in sell-side organisations show renewed focus on performance, growth and costs, after previously focusing on implementing new regulations:

  • 56% of sell-side COOs cited commercial acumen as the most important competency to have in the future (vs. 38% on the buy-side) – a twofold increase compared to today.
  • 42% of sell-side COOs saw themselves spending more time on realising cost savings in future (vs. 32% currently).
  • Sell-side COOs were most likely to feel the COO title is still relevant. Only half of respondents felt an alternative (such as chief strategy of transformation officer) was more appropriate (vs. 66% on the buy-side).

Doug Cameron, BNP Paribas Head of Location for New Zealand, said: “The role of the COO continues to evolve to encompass regulation, compliance and governance, which is becoming increasingly complex here and overseas. In addition to seeking technology solutions, our survey found COOs are adapting to these changes by upskilling their people and spending more time with clients.

Having a deep understanding of the needs of the client is critical to driving transformation and business growth.  This is especially the case in growing markets such as New Zealand where COOs are considering how their business models will need to adapt to cater for the future growth of KiwiSaver.”

The Future COO: Evolution or Revolution? report is available here. It is based on interviews with 250 financial services COOs worldwide. Interviews were conducted in Q4 2019.

Press Contacts

Angela Nguyen          angela.nguyen@au.bnpparibas.com           +612 8116 0511
Kristen Carter           kristen.carter@asia.bnpparibas.com         +852 6400 3291