Various Financing Options Through Major European
Banks - Part One
A major leading European bank with branch offices
in England, Germany, Holland, Belgium and Spain. They provide funds for
companies, institutions and projects that add cultural value and benefit
people and the environment, with the support of depositors and investors
who want to encourage the development of socially responsible and
The bank’s mission is to:
To enable both, individuals and institutions,
to use money more consciously in ways that benefit people and the
environment, and promote sustainable development.
To help create a society that promotes people’s
quality of life and that has human dignity at its core.
To offer their customers sustainable financial
products and high quality service.
The bank only finances enterprises which add
social, environmental and cultural value, in fields such as renewable
energy, social housing, complementary health care, fair trade, organic
food and farming and social business. They also provide financing to
fair trade and microcredit organizations in developing countries.
The corporate values the bank has adopted guide
their all their business dealings. Their corporate values are:
Why this bank is different?
The bank has pioneered sustainable banking since it
was founded in 1980. The bank exists because it believes that people
have the freedom to develop themselves, that they have equal rights and
that they are responsible for the consequences of their economic actions
on society and the planet. The bank has pioneered a ground break
approach to business to practically contribute to a sustainable society
that respects these principles. It has developed a strategy to finance
projects that both benefit people and the environment, and that are
The lending parameters:
The bank select projects to invest in that can
create lasting, positive change. The bank’s lending parameters are:
Selects projects which will bring real and
meaningful benefits for the wider community; for which creating
cultural, social and environmental added value is as important as
meeting commercial and financial targets.
Identifies sustainable sectors where the bank
can help projects to innovate and businesses to emerge and develop.
Ensures each selected project meets absolute
criteria which measure the potential negative impact of an
organization’s activity on people and the environment.
Closely considers the motivations of the people
involved in a loan application.
Finances clearly defined assets, activities or
projects within each organization.
Areas of interest:
The bank has a dynamic approach to where it works,
considering any loan application that meets its overall objectives. As
long as the projects continue to clearly benefit the wider community,
where and with whom, will never be a question to the bank.
The bank is active in several sectors where the
selected projects can combine added cultural, social or environmental
value with financial credibility.
Sectors of Interest
Culture & Society:
Financing can be available for businesses and
initiatives that can help people to develop and act as free and
responsible citizens. Organizations which put financial and commercial
objectives before people will not be considered. Financing can be
Childcare projects such as day care centers and
Healthcare projects such as medical centers,
therapeutic farms, care for elderly people, hospices.
Education projects such as schools, training
and conference centers.
Community projects social services, community
buildings, and migrant integration.
Art & Culture projects such as performing arts,
visual arts, cultural centers, film and media.
Philosophy of Life projects such as meditation
centers, religious and spiritual groups.
Nature and the Environment:
As previously mentioned the bank finances
sustainable environmental businesses and initiatives. To be more
specific, the bank explores opportunities to finance organizations that
help safeguard the environment and avoid “end of pipe” technologies
whenever sustainable alternatives are available. The bank refers to
certification from respected bodies such as SKAL, Soil Association and
Biogarantie to guide their decisions about organic food and farming loan
applications. Areas considered for financing include:
Organic Food projects such as shops, food
processing, restaurants and butcheries.
Organic Farming projects such dairy, meat,
poultry, forestry, arable and horticulture.
Renewable Energy projects such as wind, hydro,
solar and biomass.
Environmental technologies such as transport
Eco-development projects such as shared
workplaces, nature development and property development.
Businesses, whose key objectives are to add value
to society and/or the environment, are at the heart of the bank’s
lending decisions. These objectives are clearly reflected in the
products, services or working processes of successful loan applications.
Sectors considered for financing include:
Manufacturing such as printers and publishing.
Retail non-food such as cloths, books and toys.
Housing such as residential housing and housing
Fair Trade wholesale trading and fair trade
Professional Services such as consultancy,
building contractors and research.
Recreation such as eco-tourism, camping sites
Development cooperation such as certified FLO
products, certified organic products and microfinance.
To ensure that the bank meets with its mission and
lending parameters, the bank don’t provide financing to all
organizations, businesses and activities that produce or distribute
nuclear energy, weapons and environmentally hazardous substances as
Non-sustainable working processes:
Corruption; all organizations, businesses that
have been condemned by a court for frequent and serious corruption,
bribery and money laundering and enterprises that have violated
structural codes of conduct or treaties in the last three years.
Breach of legislation, codes of conduct or
conventions; all organizations, businesses and activities that have
frequently and seriously violated legislation, codes of conduct or
conventions, unless there is proof that they have changed their
behavior. The following criteria are considered:
Breach of environmental legislation
Breach of labor and other legislation
Breach of international codes and
Breach of fundamental labor rights
Animal experiment; all organizations,
businesses and activities that use animal experiments for
non-medical purposes or sell non-medical products that have been
tested on animals.
Genetic engineering; all organizations,
businesses and activities that generate products that have been
created by means of genetic engineering. All organizations,
businesses and activities that sell genetically engineered products
are excluded when these products do not have a clear label.
Intensive agricultural production; all
organizations, businesses and activities that handle and, or process
animals for consumption in an intensive, environmentally damaging
way and which do not take due account of animal welfare. Businesses
that sell animal products from intensive agricultural production are
excluded when they do not offer the consumer a certified organic
Dictatorial regimes; all organizations and
businesses and activities that directly and significantly contribute
to, or profit from, human rights violations by a government or other
Non-sustainable products and services:
Weapons industry; all organizations, businesses
and activities that produce and sell weapons and weapons-related
services. This includes both conventional weapons, such as pistols
and rockets, and non-conventional weapons, such as nuclear, chemical
and biological weapons and integral weapons systems.
Tobacco; all organizations, businesses and
activities that produce or sell smoking materials.
Fur industry; all organizations, businesses and
activities that hunt or keep animals for their skin or fur, supply
services to this industry or sell fur products.
Environmentally hazardous substances; all
organizations, businesses and activities that produce or sell
substances that threaten humans and the environment.
Gambling; all organizations, businesses and
activities that design, produce or sell games of chance, supply
financial services related to games of chance that qualify as
offering short odds.
Pornography; all organizations, businesses and
activities that sell pornographic products and, or that operate
related shops and meeting places.
The bank has been a leading investor in
microfinance since making its first investment in the industry in 1994.
The bank’s aim is to build long-term relationships, based on
transparency and a shared commitment to relieving poverty and caring for
the planet. The bank has invested in over 100 microfinance institutions
in more than 40 countries in Asia, Africa, Latin America and Eastern
Funds can be provided for all stages with different
risk profiles and funding structures from start-ups on wards.
Funds can be made available to established and
upcoming microfinance institutions around the world with the following
Sustainable approach toward providing financial
services to underserved client groups
Solid business operations and transparent
Work with/signatory to the Client Protection
Sound governance structure, management and
Financially/commercially sustainable or plan to
be within 2 years
Portfolio at risk (PAR)>30 days of max. 5%
Gross loan portfolio outstanding of EUR 1
Financing can be made in either equity or debt as
Financing can be made in Euros, US Dollars and
local currencies, usually ranging from EUR 500,000 to EUR 5,000,000 or
equivalent in other currencies for up to a maximum of 5 years and 10
years for subordinated debt. Funds disbursement and repayment schedules
can be structured in different ways according to the project needs.
The bank participate in the share capital of
financial institutions, including microfinance banks or microfinance
NGOs wanting to convert into regulated MFIs, and in need of additional
If you believe you meet with the above investment
criteria, you need to supply the following information and documents:
Provide short description of the organization
including vision and mission
Business plan with 3-5 years projections
Biographies of senior management
Audited accounts for the last 3 years
Recent monthly financials
Ageing portfolio review (PAR)
The sustainable trade fund offers innovative trade
finance that assist organic and fair trade producers in accessing the
markets of Europe and the United States.
Exporters in developing countries and Eastern
Europe generally lack access to adequate finance. This is a major
problem, particularly in harvest time.
The trade finance offered is simple and
straightforward. Based on an export contract with a reputable buyer in
Europe or the United States, the bank can pre-finance up to 60% of the
Trade finance for organic and fair trade exporters
in developing countries can be made according to the following
Tailored to the needs of agricultural exports
in Africa, Asia and Latin America
No restriction on product type, from coffee to
cotton, to fruit and nuts
Fast application handling, fair and transparent
Financing available to agricultural exporters in
Africa, Asia or Latin America and who are dedicated to organic
production and/or fair trade principles based on the following
To be financially and commercially sustainable
Have access to export markets for commodities
or related products
Have a minimum annual turnover of EUR 400,000
or the equivalent in US Dollars
The purpose of this trade facility is to assist
agricultural exporters to pre-finance their export contracts with
foreign buyers, providing them with the cash they need to bridge the
pre-harvest and shipment season. Export contacts form the basis of each
finance facility provided.
Each finance facility can range between EUR 200,000
and EUR 1,250,000 or the equivalent in US Dollars and up to 60% of the
value of the export contract. The financing period normally starts with
the date of the harvesting season and may continue until the last
shipment of the exported products. Generally speaking, the usual loan
period is between 6 and 12 months. No collateral will be required beyond
the receivables related to the export contracts.
The repayment process will be arranged through an
agreement between the exporter, the buyer and the bank based on the
All buyers payments for the contract
pre-financed , are to be made to the bank
The bank will hold 60% of each payment and pay
through the balance to the exporter bank account
The exporter’s monthly monitored reports enable
the bank to follow up on the transaction and the repayment of the
If you believe you qualify to this type of
financing, you can proceed and submit your request with the following
Provide short description of organization
Provide an executive summary of the deal
Recent financial statements of your company
Energy & Climate
Renewable energy is at the very heart of the bank’s
main activities. The bank can provide the support and expertise of a
team of more than 40 energy and climate specialists dedicated to
providing clients with a fast and efficient service. They have built up
unmatched experience right across the ever-expanding renewable sector;
currently financing around 280 renewable energy generating a total of
more 1000 M W of sustainable power.
The energy and climate financing scheme provide
risk capital for new and existing sustainable energy ventures of all
kinds, including wind, solar photovoltaic, biomass, hydro and geothermal
The bank’s mission is to help create a society that
promotes people’s quality of life where “human dignity” is at its heart.
Energy and climate is one of the themes that contribute to this
missions, since the world’s current unsustainable patterns of energy
production and consumption are having an increasingly impact on people’s
lives in many parts of the world.
Financing can be provided for projects that have
the following parameters:
Reduction of demand for, and more efficient use
Cleaner use of the remaining fossil fuels
Increased use of renewable energy sources like
solar, wind, biomass, geothermal, etc.
Funding and know-how can be provided from a bank
that knows the sector better:
Fast, efficient service from a dedicated team
that understands and shares your goals
Tailor made and one-stop financial services
Extensive experience and in-depth know-how in
renewable since 1980
All types of funding, for new and existing
A proven track record, currently supporting
almost 300 sustainable energy projects throughout Europe
Equity investments from EUR 1 million to EUR 50
million and ability to co-invest
Projects are funded either by the bank or by the
investment funds managed by the bank, a wholly owned subsidiary of the
bank as follows:
The fund makes equity or provides subordinated
loans of between EUR 1 million and EUR 6 million, across Western Europe.
The fund focuses on proven technologies such as on-shore wind, solar PV,
small scale hydro power and clean biomass.
This fund specializes in providing equity to
larger wind solar and biomass projects throughout Western Europe,
investing between EUR 10 million and EUR 50 million. Can participate in
share capital of projects from 20% up to 100%.
The third fund invests in renewable energy projects
mainly in the UK, but can act as a co-financer with the first fund for
projects in other countries.
This fund provides financing just for Dutch
projects looking for capital of between EUR 1 million and EUR 50
million. Ecological projects recognized by the government benefit from
lower interest rates.
Private equity investment gives companies the
capital they need to grow, and as an equity partner, the investors play
an active part in the business, usually adding value to the Board of
The bank has been providing this valuable service
to sustainable businesses since the mid of 1990s. In total, they have
managed investment portfolios and exits of around EUR 100 million. They
invest exclusively in businesses that make a positive social and
environmental impact, in sectors such as clean energy, social enterprise
and organic food.
Private equity, the capital your business needs:
20 years track record of successful private
equity investment including development and growth capital
Appropriate hands-on approach with portfolio
Backed by investors who share the bank’s value
and understand its goals
Exclusive focus on sustainable sectors giving
in-depth market knowledge
Focus on long-term returns, combining financial
gains with positive social impact