Siemens Gamesa has arranged sustainable foreign exchange (FX) hedging contracts totalling €174m in coordination with BNP Paribas.
The turbine manufacturer said that these are the first FX hedging deals to be arranged under BNP Paribas’s new sustainable derivatives platform linked to the UN’s Sustainable Development Goals.
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’, Siemens Gamesa said.
The FX hedging deals will direct premium payments towards financing forestry projects, it added.
These sustainable initiatives include plantation projects in Spain, which have a forest preservation objective.
In another deal arranged with BNP Paribas, the company converted a €240m guaranteed credit line into a ‘green’ line and signed an additional line for €110m.
That €350m is in addition to the €900m in guarantees arranged with another unnamed bank.
Siemens Gamesa chief financial officer David Mesonero said: “We are taking the lead in green finance, and proving that sustainability can be present in every step we take as a Company.
“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.”
BNP Paribas global head of sustainable finance for global markets at Amine Bel Hadj said: “This sustainable FX hedge illustrates BNP Paribas’ continued strength as an industry leader in sustainable finance.
“Our pioneering and innovative structuring capabilities across rates and FX support our 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.”