Natixis plans to focus on environmentally friendly lending

Monday 20 July 2020 10:33 CET | News

France-based bank Natixis has announced commodities and infrastructure operations merger to focus on clean energy.

The move in restructuring sources was accelerated by a series of loss-making loans to oil traders. This highlights the struggles of businesses connected to a sector grappling with an oil price collapse, rising bankruptcies, and growing pressure to switch attention to greener fuels. Natixis became the first European bank to introduce internal financial penalties in 2019 through its Green Weighting Factor on deals that are not environmentally friendly.

The restructuring will result in some of the 140 people from the bank’s energy and natural resources team joining 100 people from the infrastructure unit. The remaining energy team employees will be part of a different division focused on short and medium-term trade finance. The decision to restructure was made before the coronavirus crisis but the plan was pushed forward after the bank booked a loss in the first quarter of 2020, according to Reuters.

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Keywords: Natixis, environmentally friendly, lending, France, loans, oil traders, oil price collapse, bankruptcies, greener fuel, European bank, financial penalties, Green Weighting Factor
Categories: Banking & Fintech
Countries: France
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Banking & Fintech

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