ING has set up a green finance framework for ITOCHU Europe PLC, providing the first-ever green loan to a Japanese trading company.
ITOCHU Europe is a subsidiary of ITOCHU Corporation, one of Japan’s largest trading companies in terms of asset size. This is also ING in Belgium’s first transaction aligned with the Loan Market Association (LMA) green loan principles.
“Sustainability is a key driver of ITOCHU Europe’s business activities, ranging from textiles, machinery, non-ferrous metals, foodstuffs, chemicals, general merchandise and some financial transactions,” says Hiroshi Sato, CEO of ITOCHU Europe.
“ITOCHU Europe, together with ITOCHU group companies in the region, would like to achieve growth by expanding our sustainable business in such ways as developing and introducing new technology for environmentally friendly materials, deploying sophisticated technology to save energy, and investing in energy efficient and/or renewable energy projects.”
The green loan principles were developed by the LMA to support the development and integrity of green loans. They set the standards and guidelines for the entire green loan market.
The framework will allow ITOCHU Europe and its group companies to obtain various types of green financing instruments such as green loans, green bonds, green SSD etc., to finance and refinance green projects in two areas: renewable energy and pollution prevention and control.
“Establishing the green finance framework is an important milestone for us, showing our clear commitment to sustainability to the public here in Europe,” says Sato.
