ABN AMRO raises 100 billion euros with sustainable bonds and pioneers the EU Green Bond

Companies looking for ways to finance sustainable investments can turn to ABN AMRO for a loan. Another option is to raise capital by issuing bonds on the capital market. The proceeds from these green bonds help banks, businesses and public and semi-public institutions achieve their sustainability goals, like making the transition from fossil fuels to renewable energy. Over the last five years, Joop Hessels, Dick Ligthart and Suze Korse of ABN AMRO’s Sustainable Markets team have helped clients raise over € 100 billion in sustainable capital.

Dick Ligthart cites the green bond that the bank arranged for the energy network operator Gasunie as an example. “Investor interest was enormous,” he says. “In fact, the issue was more than five times oversubscribed. Gasunie is using the capital to finance a number of its energy transition projects, including the development of a hydrogen network and carbon storage infrastructure.”

Still ahead of the game

“ABN AMRO was one of the first European banks to issue and advise on sustainable bonds,” says Joop Hessels. And that early involvement has paid off. “Our knowledge of the sustainable bond market has generated huge market interest from day one. Together with our colleagues, we’ve helped raise billions in sustainable capital market financing and recently passed the € 100 billion milestone.”

Staying ahead of the game remains a top priority, Joop explains: “For years, we’ve focused on the strict criteria imposed by the EU taxonomy sustainability classification system to prepare for the EU Green Bond Standard, which came into force at the end of December 2024. This groundwork enabled our team to help ABN AMRO become the first bank in the world to issue an EU-labelled green bond (EuGB) in February this year. The EU itself refers to the EuGB as the gold standard.”

Bonds bearing the EU Green Bond Label meet the EU taxonomy requirements for sustainable investments, Dick says: “This European benchmark will now make it easier for investors to gauge to what extent an investment aligns with the goals of the Paris climate accord. It sets clear standards, like the A energy label for homes, but also ensures that investments don’t infringe on other key areas – like safeguarding marine ecosystems when offshore wind turbines are installed or operational.”

Driving sustainable impact

The team brings extensive expertise when it comes to sustainable bonds, which encompass green bonds (for investments focused on climate change mitigation), transition bonds (for helping companies become more sustainable) and social bonds, which are issued by private and public entities to finance social housing, healthcare and educational institutions. Investors – usually institutional investors – of these instruments expect full transparency on how their capital is being used and on the sustainable impact these investments have.

Transparency is a cornerstone of sustainable bonds, and that’s precisely why impact reporting is crucial. Accordingly, ABN AMRO publishes a green bond impact report each year. “It shows investors exactly where, how and to what extent their investments are making a sustainable impact,” says Suze Korse.

New insights

Structuring a sustainable bond is a labour-intensive process spanning several months. This is especially true for EU Green Bonds, which must detail the projects to be financed and their expected social impact. All this involves gathering data on everything from carbon emissions to environmental impacts. And while these data aren’t always readily available within an organisation, the collection process itself can contribute to sustainability, Suze says: “Just engaging in dialogue with the organisation results in new insights.”

Joop cites a recent example involving a green bond issued to finance a ship’s sustainable upgrade. ABN AMRO’s Sustainable Markets Desk advised the shipping company throughout the process. Joop explains, “While gathering information, we looked into the lubricant used on the ship’s propeller, some of which would inevitably leak into the water. Working together with the client, we started to explore ways to minimise this pollution. We eventually came up with a solution that involved switching to a biodegradable lubricant, which completely eliminated the problem.” After further research, the shipping company decided to switch to the biodegradable alternative across its entire fleet.

“It’s great to see how issuing a sustainable bond often inspires organisations to raise the sustainability bar a little higher,” Dick says. “And it’s one more way the bank is helping to drive the transition to a more sustainable future.”