Deutsche Bank and global consumer credit provider Home Credit Philippines (Home Credit) today announced the closing of an innovative ESG loan in the Philippines. This operation represents an important step in the development of ESG financing with robust objectives linked to “S” or social considerations.
The short-term loan facility establishes clear metrics and key performance indicators (KPIs) with respect to ESG considerations, as well as concrete targets for the metrics Home Credit is committed to achieving over the life of the loan. . Key performance indicators focus on expanding access to credit to underserved communities in the Philippines, including women and first-time borrowers, and increasing the supply of education programs financial in the Philippines.
The deal also has targets around Home Credit‘s digitization efforts, committing it to provide at least 60% of its loans through digital channels, in order to provide a higher level of transparency to customers, to enable rates and fairer loan terms for clients, regardless of their economic or social background. In addition, KPIs track data to confirm Home Credit’s commitment to protecting the privacy of its customers’ data and to ensure that data is only used by Home Credit for agreed purposes.
These KPIs will be measured and verified by an independent third party advisor. The loan complies with the sustainability lending principles of the Asia Pacific Loan Market Association.
Jean Lafontaine, Group Head of Funding, Treasury, M&A and Investor Relations at Home Credit, “As a company, we are constantly looking for innovative financing solutions and this is our very first ESG loan at Group level and ‘An important milestone. ESG is not something new for Home Credit Group and is part of our company’s DNA. We are delighted that our continued efforts to provide greater financial inclusion in markets like the Philippines – our other markets more broadly – are recognized. With the KPIs associated with this credit facility, we are even better positioned to continue to provide fair and transparent access to financial services to the communities in which we operate. This transaction reflects the confidence that our partners have in our work to drive our ESG program.
Kamran Khan, Deutsche Bank ESG Head of Asia Pacific, said: “This is a pioneering transaction reflecting the shift from consumer lending in Asia to responsible and sustainable lending. It is also changing the ESG landscape by demonstrating that beyond environmental considerations, financing can also be significantly linked to social impact objectives, which in this case are strongly focused on financial inclusion. . This is an emerging and important area of ESG, particularly in Asia; both the need and the opportunity to have an impact are great. ”
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Deutsche Bank AG published this content on 22 December 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 22 December 2021 03:52:01 UTC.