Credit Bank of Moscow (MKB) has raised its debut ESG-linked loan for 20 million dollars from Landesbank Baden-Wuerttemberg (LBBW), one of the green banking leaders in Europe.

The deal was preceded by active cooperation between MKB and LBBW on the implementation of structural sustainable elements to the existing framework documentation between the parties.

MKB is the first bank in Russia to raise a loan linked to the independent assessment of its sustainability performance, specifically ESG rating of RAEX Europe.

“This loan product structure highlights MKB’s commitment to the formation of a more sustainable future and further improvement of its performance under three components of the rating assessment: environmental considerations, social focus and corporate governance,” MKB’s press office commented.

The loan maturity is 2 years, which secures a comfortable timeframe for material improvements in terms of the ESG performance and ensuring diversification of the bank’s liabilities.

“We are honored that our ESG-linked efforts were recognized by a green market professional and that with a new innovative sustainable product LBBW can participate in our ESG progress,” said Elena Finashina, Head of Sustainable Development Division at MKB.

Sustainability is one of LBBW’s strategic priorities, so the bank aims to accompany its customers on their way to sustainable business models, explained Torsten Biesel, Head of Financial Institutions at LBBW.

“We are pleased that we are also advancing the topic of sustainable financing internationally with our first ESG loan in Russia and would like to thank our partner MKB for the excellent cooperation,” Biesel added.