“Deutsche Bank Pegs Turkey Repo Finance Deal to Gender, Climate” – Bloomberg – August 12, 2021

On August 12, 2021 Bloomberg reported that “Deutsche Bank AG has tied the interest rate on an interbank financing deal with AkbankTAS to goals on gender balance, renewable energy use and avoidance of funding to coal power plants, which it says is a first in the region.

The $300 million repurchase agreement with Turkey’s second-largest lender by market value helps bring the German bank’s financing for environmental, social or governance goals to more than 5 billion Turkish lira ($582 million) in the first six months of 2020, according to a statement Thursday.

It’s the latest sign that the ESG label is increasingly being applied to more exotic corners of finance. But while green bonds allow investors to track the use of proceeds, it will be harder for the market to measure how an ESG repo delivers on the sustainability metrics to which the parties have agreed.”

You may read the article on the Bloomberg internet site.