Rosbank acted as one of lead arrangers and bookrunners of syndicated loan for MKB - first in Russia ESG KPI-linked loan for financial organization

    14 October

Rosbank acted as one of the lead arrangers and bookrunners of first in Russia syndicated loan for the financial institution - MKB - linked to ESG KPIs.

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.

During the facilitation, 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.

«This transaction reconfirms our commitment to the principles of sustainable development, embedded in Rosbank’s long-term strategy. We welcome the ESG goals set by MKB under this loan, especially in terms of building a portfolio of responsible financing - the most material indicator for a financial institution with social and environmental commitments. We are glad to have become a part of a group of international banks that, together with the client and the sustainability coordinators, have been actively working on the structure and wording of the KPIs,» said Perizat Shaikhina, First Deputy CEO of Rosbank.

«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 BANK acted as the facility and ESG coordinator and the Facility and documentation agent; ROSBANK, ING BANK, CITIBANK and HSBC - as mandated lead arrangers and bookrunners. Banca Intesa, Crédit Agricole and RAIFFEISENBANK acted as mandated lead arrangers.