Aviva Investors and BNP Paribas complete first ESG SONIA swap repack with Associated British Ports

31 May 2021

Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), has announced it has jointly completed an ESG-linked interest rate swap repack with BNP Paribas, and which has been provided to Associated British Ports (‘ABP’).

The 30-year transaction is believed to be the first SONIA-linked interest rate swap institutional repack, and the first institutional repack transaction to have sustainability-linked key performance indicators (KPIs) attached to it. The performance targets were subject to second party verification by ISS, to ensure they were both sufficiently material and ambitious in nature, whilst also remaining aligned to LMA sustainability-linked loan principles.

As part of the deal, a discount is offered to ABP on its hedging rate, provided it meets certain ESG KPIs, including a significant reduction in combined Scope 1 and Scope 2 emissions by 2030, building on the 36% reduction it has achieved in absolute greenhouse gas emissions since 2014.

The agreement with ABP and BNP Paribas is the latest sustainability-linked financing Aviva Investors’ Real Assets business has invested in on behalf of Aviva UK Life, as it seeks to decarbonise its portfolio and transition to net zero by 2040. The transaction also highlights BNP Paribas’ commitment to innovating in sustainability-linked finance to support corporate and institutional clients.

Source: Aviva