Siemens Gamesa Renewable Energy (SGRE) pioneers the green foreign exchange hedging market

In a landmark deal arranged with BNP Paribas, Siemens Gamesa has launched a notional total of 174 million euros in FX hedging contracts for 'sustainable' transactions, contributing to the UN’s Sustainable Development Goals.
Siemens Gamesa Renewable Energy (SGRE) pioneers the green foreign exchange hedging market
Courtesy of European Central Bank

Siemens Gamesa Renewable Energy (SGRE) has arranged sustainable FX hedging contracts, totalling 174 million euros, an arrangement with BNP Paribas and conducted through its new sustainable derivatives platform linked to the United Nation’s Sustainable Development Goals (SDG). The derivatives are used not only to hedge the FX exposure of selling offshore wind turbines in Taiwan, they also have an impact on the SDG targets related to ‘Climate Action’, and ‘Affordable and Clean Energy’.

The company continues to record new milestones in its sustainable development strategy, having already raised 1.25 billion euros in ‘green’ transactions that contribute to the SDG programme.  

Recently, in another deal arranged with BNP Paribas, the company converted a 240 million euros guaranteed credit line into a ‘green’ line and signed an additional line for 110 million euros. That 350 million euros is in addition to the 900 million euros in guarantees arranged with another bank. 

“We are taking the lead in green finance, and proving that sustainability can be present in every step we take as a Company” said David Mesonero, CFO at Siemens Gamesa. “This operation hedges foreign exchange risk in a key market for us, and contributes to mitigating the effects of climate change at the same time. By walking our talk we´re leading the way for more and more companies.”

Amine Bel Hadj, Global Head of Sustainable Finance for Global Markets at BNP Paribas, added that the sustainable FX hedge illustrates BNP Paribas’ continued strength as an industry leader in sustainable finance and that the company’s structuring capabilities across rates and FX support clients in the energy transition and help accelerate the UN SDGs. To accompany Siemens Gamesa´s sustainable journey, the bank is providing this hedge of the FX exposure attached to a renewable project, as well as committing to reinvest any premium in a reforestation project.

The FX hedging deals will direct premium payments towards financing Forestry Projects. These Sustainable Initiatives include plantation projects in Spain, which have a forest preservation objective.

Siemens Gamesa Environmental, Social and Governance (ESG) strategy conceives global development to be underpinned by economic growth, social welfare and environmental protection. The company is committed to driving this global process forward and contributing to the achievement of SDGs and related objectives. ESG creates scalable technology solutions for solving global problems and generate benefits while benefiting society as a whole.

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Siemens Gamesa Renewable Energy (SGRE)

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