NEW YORK--(BUSINESS WIRE)--A consortium of leading financial institutions and investors today announced a new partnership under the Catalytic Finance Initiative (CFI) to direct $8 billion in total commitments toward high-impact sustainable investments. Partners joining the CFI include AllianceBernstein (AB); Babson Capital Management LLC, a subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual); Crédit Agricole CIB; European Investment Bank (EIB); HSBC Group; International Finance Corporation (IFC), a member of the World Bank Group; and Mirova, a subsidiary of Natixis Group, all of which have pledged capital and expertise to develop and advance innovative financing structures for investments in clean energy and other sustainability focused projects. In addition, the Aligned Intermediary, representing a group of long-term institutional investors, will collaborate on specific investment opportunities with members of the partnership. This announcement follows last year’s ratification of the United Nations Sustainable Development Goals (SDG) and the historic climate agreement in Paris. It aims to promote the SDG objectives, including acting on climate change and advancing access to clean energy and water.
The CFI was originally launched by Bank of America in 2014 with a $1 billion commitment and a goal to stimulate at least $10 billion in new investment into high-impact clean energy projects through additional partnerships. Today, it has expanded to include several leading financial organizations with their own capital commitments. By working together, this leading group of global financial institutions and investors can combine their efforts to increase funding and significantly accelerate the transition to clean energy solutions and advancing the SDGs.
CFI partners bring expertise in a broad range of financial specialty areas. This includes clean energy infrastructure finance, green bonds, project finance, green asset-backed securities, emerging markets investment and advisory assistance, and approaches to blending public and private finance.
In a joint statement, CFI partners highlight the importance of this initiative:
“Financial innovation and capital play a critical role in the transition to a low-carbon economy. Through the Catalytic Finance Initiative and this joint partnership, together we can support the transition to a low-carbon economy and sustainable growth. By providing $8 billion in commitments, we can help to advance new investment opportunities in clean energy as well as other sustainable development goals and achieve the necessary scale for a positive impact on climate change.”
The Aligned Intermediary
The Aligned Intermediary (AI) is a new
investment advisory group created to help large scale, long-term
investors (LTIs) channel significant amounts of institutional capital
into climate infrastructure investments including clean energy, water
infrastructure, and waste-to-value projects. The AI will guide its LTI
partners — sovereign funds, pension funds, endowments, insurance
companies, family offices, and foundations — around all levels of
capital investment; early-stage, growth and project finance.
Specifically, AI will source, screen, conduct due diligence, and structure transactions that satisfy specific goals related to risk-adjusted financial rates of return for each partner, as well as assist in deal monitoring and facilitating post-close value creation for the life of an investment when requested.
Additional information about AI can be found at www.alignedintermediary.org.
AB
AB is a leading global investment management firm that offers
high-quality research and diversified investment services to
institutional investors, individuals and private wealth clients in major
world markets.
At December 31, 2015, AB Holding owned approximately 36.7% of the issued and outstanding AB Units and AXA, one of the largest global financial services organizations, owned an approximate 62.8% economic interest in AB.
Additional information about AB may be found on our website, www.abglobal.com.
Babson Capital Management LLC
Babson Capital Management LLC is one
of the world’s leading asset management firms, with approximately $223
billion in assets under management as of December 31, 2015. Through
proprietary research, analysis and a focus on investment fundamentals,
the firm and its global affiliates develop products and strategies that
leverage its broad expertise in global fixed income, structured
products, middle market finance, commercial real estate, alternatives
and equities. A member of the MassMutual Financial Group, Babson
maintains a strong global footprint with operations on four continents
and clients in over 20 countries. MassMutual Financial Group is a
marketing name for Massachusetts Mutual Life Insurance Company
(MassMutual) and its affiliated companies and sales representatives.
MassMutual is a leading mutual life insurance company that is run for
the benefit of its members and participating policy owners. Learn more
at www.babsoncapital.com
and www.massmutual.com.
Bank of America
Bank of America is one of the world's leading
financial institutions, serving individual consumers, small and
middle-market businesses and large corporations with a full range of
banking, investing, asset management and other financial and risk
management products and services. The company provides unmatched
convenience in the United States, serving approximately 47 million
consumer and small business relationships with approximately 4,700
retail financial centers, approximately 16,000 ATMs, and award-winning
online banking with approximately 32 million active users and
approximately 19 million mobile users. Bank of America is a global
leader in wealth management, corporate and investment banking and
trading across a broad range of asset classes, serving corporations,
governments, institutions and individuals around the world. Bank of
America offers industry-leading support to approximately 3 million small
business owners through a suite of innovative, easy-to-use online
products and services. The company serves clients through operations in
all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto
Rico and more than 35 countries. Bank of America Corporation stock
(NYSE: BAC) is listed on the New York Stock Exchange.
Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and member of SIPC, and, in other jurisdictions, a locally registered entity. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.
Visit the Bank of America newsroom for more Bank of America news, and click here to register for news email alerts.
Crédit Agricole Corporate and Investment Bank
Crédit Agricole CIB
is the Corporate and Investment Banking arm of the Crédit Agricole
Group, the world’s No. 9 largest bank by total assets (The Banker, July
2015). The Bank offers its clients a comprehensive range of products and
services structured around six major divisions:
- Client Coverage & International Network
- Global Investment Banking
- Structured Finance
- Global Markets
- Debt Optimisation & Distribution.
- International Trade & Transaction Banking
The Bank provides support to clients in large international markets through its network with a presence in major countries in Europe, America, Asia Pacific and the Middle East.
For more information, please visit its website at www.ca-cib.com.
European Investment Bank (EIB)
The European Investment Bank (EIB)
is the European Union's bank. They are the only bank owned by and
representing the interests of the European
Union Member States. The EIB works closely with other EU
institutions to implement EU policy.
As the largest multilateral borrower and lender by volume, the EIB provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90% of activity is focused on Europe but also supports the EU's external and development policies.
The HSBC Group
HSBC Holdings plc, the parent company of the HSBC
Group, is headquartered in London. The Group serves customers worldwide
from around 6,000 offices in 71 countries and territories in Asia,
Europe, North and Latin America, and the Middle East and North Africa.
With assets of US$2,410bn at 31 December 2015, HSBC is one of the
world’s largest banking and financial services organisations.
HSBC Global Banking & Markets
HSBC Global Banking & Markets is
an international wholesale business serving major corporate,
institutional and government clients. It has a broad international
network with offices in more than 60 countries and territories, with
strong expertise across developed and emerging economies. Global Banking
& Markets has deep knowledge across a wide range of products and
services including: financing; debt and equity capital markets;
acquisition, project and export advisory and financing; foreign
exchange, fixed income and equities; payments and cash management and
securities services.
IFC
IFC, a member of the World Bank Group, is the largest global
development institution focused on the private sector in emerging
markets. Working with more than 2,000 businesses worldwide, we use our
capital, expertise, and influence, to create opportunity where it’s
needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared
prosperity. Since starting to track the climate-smart components of its
investments and advisory services in 2005, IFC has provided more than
$13 billion in long-term financing for renewable power, energy
efficiency, sustainable agriculture, green buildings and private sector
adaptation to climate change. For more information, visit www.ifc.org
Mirova
Mirova, a subsidiary of Natixis Asset Management, S.A.
(Natixis AM), is operated in the U.S. through Natixis Asset Management
U.S., LLC (Natixis AM US). Natixis AM US is a US-based investment
adviser, that is a wholly owned entity of Natixis AM. Natixis AM US
utilizes the investment and research expertise of Mirova, which Natixis
AM US then combines with its own expertise, and services from Natixis AM
when providing advice to clients.
Mirova offers a global responsible investing approach involving Equities, Fixed Income, General and Renewable Energy Infrastructure, Impact Investing, and Voting and Engagement. It has €6.1 billion in assets under management and €42.9 billion in Voting and Engagement. Its team of circa 60 multidisciplinary experts includes specialists in thematic investment management, engineers, financial and environmental, social and governance analysts, project financing specialists and experts in solidarity finance.
Limited liability company –Share capital A 7 461 327.50 – Regulated by AMF under n° GP 02-014 – RCS Paris n°394 648 216
MIROVA is a NATIXIS ASSET MANAGEMENT subsidiary
Source: Mirova – 31/12/2015
