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BNP Paribas will leverage Baringa’s Climate Change Scenario Model as it further develops its ability to analyse climate scenario risk
BNP Paribas is already committed to being a leader in climate strategy, as the Financial Services industry responds to and recognises its role in climate change and climate risk
BNP Paribas has reached its carbon neutrality objective in terms of the CO₂ emissions arising from its own operations, increased total funding for renewable energies and invested in innovative start-ups to accelerate efforts in energy transition
BNP Paribas is now turning to developing its climate scenario analysis capability as part of a strengthening of its ESG risk management framework through this 2021 project with Baringa
BNP Paribas has chosen Baringa as its partner for this work, recognising their expertise in climate strategy and risk in financial services
BNP Paribas will also be leveraging Baringa’s award winning Climate Change Scenario ModelTM, which has been adopted by Financial Services institutions globally with over $12 trillion of assets.

This partnership between BNP Paribas and Baringa will help to develop the standards for embedding climate scenario analysis within one of the world’s largest banking institutions. The establishment of an integrated climate scenario analysis capability will bring an additional objective and data driven approach to climate strategy and commitments, to climate risk management, client engagement and to both internal and external reporting.

Antoine Bezat, Head of Stress Testing Methodologies and Models at BNPP, said: “Climate scenario analysis is a critical strategic capability for BNPP. We are delighted to be working with Baringa who are deep experts in this topic. They bring 20 years of experience of energy system and climate transition modelling, as well as their experience as leaders in deploying climate strategies into many of the largest banks in the world.

“Baringa’s Climate Scenario Model stands out for its breadth of sector and asset coverage, the integration of transition and physical risk, and the ability to provide risk metrics down to the individual asset level. The modular and customisable nature of the solution will enable us to develop our own climate scenario and risk framework over time, to the specific needs of BNPP”

Colin Preston, Head of Financial Services Sector & Climate Change at Baringa, says “We are thrilled to be working with BNPP – as one of the largest global banks, and an organisation that is recognised for its commitment to sustainability and climate. We will help BNPP to accelerate and embed practical and usable climate analytics across its organisation, feeding into its climate strategy, and into all key decision making and reporting. This will pave the way for others to follow across the industry.”

London, 22 March 2021 – BNP Paribas today announces that ALiX, its FX digital trading assistant first launched in September 2019, has expanded across the full FX product suite on the bank’s advanced multi-award winning FX trading platform, Cortex FX.

Originally only available on algo orders, ALiX can now assist clients across the full FX product suite, including spot, forwards, swaps, options, and orders, in addition to algos.

ALiX is now a genuine one-stop shop for clients to access live tradable price quickly and easily, helping them speed up daily tasks such as rolling FX positions or pricing complex options requests versus traditional methods.

Upskilled ALiX is engineered to pack all the power of Cortex FX into one small widget that fits neatly in the corner of a client’s screen, without having to open a separate window. Clients type in their FX request and, using the latest AI and cutting-edge natural language processing (NLP) technology, ALiX is able to understand and instantly price their request.

Since its launch in 2019, ALiX has answered over 400,000 client queries.

Other new enhanced live features on Cortex FX include:

Gamma Algo – dynamically manages a client’s option gamma profile, resulting in a smooth execution experience and freeing up clients time to concentrate on seeking market alpha. Delta hedges are executed through Direct Market Access (DMA), providing clients the opportunity to potentially earn spread. The execution is optimised through intelligent features such as momentum protection and soft-stops.

Orders 2.0 – an upgraded orders platform for clients to leave take profits and stop loss orders via Cortex FX. Orders left with BNP Paribas leverage a powerful hybrid matching platform with the ability to offset against the bank’s network of internal liquidity and external market liquidity – providing clients complete flexibility and transparency.

BNPP Connect – a digital chat channel, powered by Symphony. Clients can chat directly with their sales representative, Cortex support teams or interact with chat bots, such as Insight4Me to conveniently access a personalised research and content feed.

Nick Hamilton, Head of EMEA eFX Sales at BNP Paribas, said: “With ALiX having expanded its skillset across the entire FX suite it now offers a true one-stop shop for clients to trade effortlessly via Cortex FX. Our clients have had to adapt to new trading environments over the last year, and through listening to their needs, and leveraging cutting edge, innovative technology, ALiX continues to define the next generation of FX trading platforms.”

Joe Nash, digital FX COO at BNP Paribas, said: “In an ever evolving and complex market we continually strive to offer clients a bespoke personal trading experience, adapting to their ever more sophisticated needs. ALiX has been designed to fit a world where screen real estate is at a premium and an ever expanded number of users are working remotely. ALiX has a diminutive screen stature but is indisputably pixel for pixel the most powerful FX platform on the market.

Ends

Press Contacts:

BNP Paribas

Murray Parker +44 (0) 7818 510 056 murray.parker@uk.bnpparibas.com

Notes to Editors:

About BNP Paribas

BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 71 countries, with approximately 199,000 employees, of which more than 151,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.

Aberdeen Standard Investments (ASI) and BNP Paribas established its Global Risk Mitigation (GRM) Index to provide institutional investors, such as pension funds and discretionary portfolio managers with an effective route to mitigate their equity risk and reduce portfolio volatility. The index family was launched live in July 2019.

The GRM Index, the composition of which is advised by ASI, aims to deliver a downside beta to equities of -0.2 or lower and generate a reasonable level of additional convexity in large equity market falls. This convexity means the Index should deliver stronger positive returns as the equity market decline increases. In addition, the Index has been designed to limit carry costs in rising/flat equity markets thereby making it easier for investors to retain the exposure in more benign environments. This investment objective is achieved by ASI dynamically allocating across four discrete building blocks namely; First Risk, Tail Risk, Trend and Defensive factors. Each of the four discrete blocks includes a number of underlying sub-indices published by BNP Paribas.

Since launch, the GRM index average beta (versus the S&P 500) has been -0.21*.

During 2020, the respective indices delivered:

GRM = +11.48%

GRM x3 = +36.30%

The allocation to the First Risk and Tail Risk blocks, typically made up of long volatility strategies, enabled the index to achieve high convexity during the Covid-19 sell-off earlier last year. During the sell-off period the x3 leveraged version returned +62.1% (Feb 19^th – March 18^th2020), whilst the S&P500 lost 29.2%.

The active management of the index meant that a large proportion of the performance in the sell-off was retained when volatility and equity markets normalised after the first quarter 2020. Between the end of the sell-off and the start of Q4, the x3 leveraged index lost 12.3% while the S&P recovered by over 40%. Then, going into the final quarter of 2020 the Trend and Defensive blocks within the index performed well, resulting in the x3 leveraged index only declining by 2.0% while equities rallied 7.3%.

This asymmetric profile in rising markets was especially noticeable in December, where despite equity markets gaining 3.7%, the x3 leveraged index returned a positive performance of 1.06%. The realised index return illustrated the benefits of active management. When volatility levels reset lower last year the index allocation of weights shifted from the First and Tail Risk blocks to the Defensive and Trend factors which perform better in more stable environments.

The complementary nature of the GRM index to a portfolio of equity holdings was very clear during 2020.

An index comprised of 100% GRM + 100% MSCI World would have returned +33.7%** this year.

An index comprised of 100% GRM x3 + 100% MSCI World would have returned +70.7%** this year

Various investment vehicles are available for investors to access the index including a daily dealing Irish domiciled fund.

Russell Barlow, Global Head of Alternative Investment Strategies at Aberdeen Standard Investments, comments: “The ASI Risk Mitigation Index is an extremely efficient tool that provides allocators with a range of access route to the strategy. These include an overlay on top of an existing equity allocation through to a tactical tool that an allocator can use when looking to increase their defensive positioning without the need to worry about timing a market top.

“2020 was clearly a test for any hedging strategy; however, the robust performance of GRM during the COVID crisis demonstrated we passed that test. In addition to this hedging strategies were also tested on their ability to retain these gains during the subsequent market recovery. It was GRM’s ability to deliver on both these aspects that clearly established the merits of our programme. The GRM index provides an allocator with an efficient alternative to a rolling put strategy; delivering a comparable level of downside protection during a crisis but at a much lower cost of ownership in the intervening periods.”

Narvir Brar, Head of UK Equity Institutional sales at BNP Paribas commented: “We are very pleased with the investment performance during 2020, the team at ASI worked diligently to not only ensure the portfolio was well balanced to capture profits during the Q1 equity sell off but also to retain much of the gains during the rest of the year. Indeed since the floor in MSCI World on 23^rd March 2020, the GRM x3 index lost -11% compared with a 70% gain in the MSCI World, this comes after capturing returns in Q1 in excess of the negative decline in global equity markets”

*Source: Performance data is taken from Bloomberg unless specified otherwise. Past performance is not an indicator of future performance.

**Source: BNP Paribas. The GRM + MSCI World is an automatically re-balanced index to target (equal) weights quarterly.

Media enquiries:

Andrea Ward

Aberdeen Standard Investments

07876 178696

andrea.ward@aberdeenstandard.com

Murray Parker

BNP Paribas

07818 510 056

murray.parker@uk.bnpparibas.com

Notes to editors

About Aberdeen Standard Investments

Aberdeen Standard Investments (ASI) is a leading global asset manager dedicated to creating long-term value for our clients, and is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
With over 1,000 investment professionals we manage £511.8 billion (as at 30 June 2020) of assets worldwide. We have clients in 80 countries supported by 50 relationship offices. This ensures we are close to our clients and the markets in which they invest.
We are high-conviction; long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance. We are resolute in our commitment to active asset management.
ASI is the asset management business of Standard Life Aberdeen plc, one of the world’s largest investment companies.
Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. The Standard Life Aberdeen group was formed by the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017.
ASI GRM Index: Bloomberg Ticker ENHAGRM1 Index
ASI GRM x3 Index: Bloomberg Ticker ENHAGRM3 Index

www.aberdeenstandard.com

About BNP Paribas

BNP Paribas is a top-ranking bank in Europe with an international profile. It operates in 71 countries and has almost 199 000 employees, including more than 151 000 in Europe. The Group ranks highly in its three core areas of activity: Domestic Markets and International Financial Services (whose retail banking networks and financial services are grouped together under Retail Banking & Services) and Corporate & Institutional Banking, centred on corporate and institutional clients. The Group helps all of its clients (retail, associations, businesses, SMEs, large corporates and institutional) to implement their projects by providing them with services in financing, investment, savings and protection. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in the field of consumer lending in Europe. BNP Paribas is also rolling out its integrated retail banking model across the Mediterranean countries and in Turkey and Eastern Europe and has a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas enjoys leading positions in Europe, a strong presence in the Americas and has a solid and fast-growing network in the Asia/Pacific region.

Disclaimer

The methodology of and rules governing the index (the “Index Methodology” and the “Index”) are proprietary and may not be disclosed or disseminated without the permission of the sponsor of the Index (the “Index Sponsor”). None of the Index Sponsor, the index calculation agent (where such party is not also the Index Sponsor, the “Index Calculation Agent”) nor, where applicable, the index Investment Advisor (the “Index Investment Advisor”) guarantee that there will be no errors or omissions in computing or disseminating the Index.

The Index Methodology is based on certain assumptions, certain pricing models and calculation methods adopted by the Index Sponsor, the Index Calculation Agent and, where applicable, the Index Investment Advisor, and may have certain inherent limitations. Information prepared on the basis of different models, calculation methods or assumptions may yield different results. You have no authority to use or reproduce the Index Methodology in any way, and neither BNP Paribas nor any of its affiliates shall be liable for any loss whatsoever, whether arising directly or indirectly from the use of the Index or Index Methodology or otherwise in connection therewith.

The Index Sponsor reserves the right to amend or adjust the Index Methodology from time to time in accordance with the rules governing the Index and accepts no liability for any such amendment or adjustment. Neither the Index Sponsor nor the Index Calculation Agent are under any obligation to continue the calculation, publication or dissemination of the Index and accept no liability for any suspension or interruption in the calculation thereof which is made in accordance with the rules governing the Index. None of the Index Sponsor, the Index Calculation Agent nor, where applicable, the Index Investment Advisor accept any liability in connection with the publication or use of the level of the Index at any given time.

The Index Methodology embeds certain costs in the index which cover amongst other things, friction, replication and repo costs in running the Index. The levels of such costs (if any) may vary over time in accordance with market conditions as determined by the Index Sponsor acting in a commercially reasonable manner.

BNP Paribas and/or its affiliates may act in a number of different capacities in relation to the Index and/or products linked to the Index, which may include, but not be limited to, acting as market-maker, hedging counterparty, issuer of components of the Index, Index Sponsor and/or Index Calculation Agent. Such activities could result in potential conflicts of interest that could influence the price or value of a Product.”

Important Information

Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.

Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.

The details contained here are for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any investments or funds and does not constitute investment research, investment recommendation or investment advice in any jurisdiction.

Aberdeen Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419.

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated in the UK by the Financial Conduct Authority.

10 December 2020, London – BNP Paribas has agreed a £50mn sustainability-linked revolving credit facility with Metropolitan Thames Valley (MTVH), one of the UK’s largest housing associations. The three-year facility is believed to be the first Risk Free Rate (RFR) sustainability-linked loan in the sector.

The facility’s interest margin is tied to MTVH achieving environmental targets of reducing greenhouse gas (GHG) emissions linked to energy consumption from both its offices and transport, as well as its residential portfolio. The measured GHG emission reduction values – corresponding to the preceding financial year – are reported.

MTVH has transitioned the facility away from LIBOR (which is due to cease at the end of 2021) with multiple interest periods linked to the Sterling Overnight Index Average (“SONIA”) for GBP.

“We’re committed to supporting the decarbonisation of social housing in the UK, and this innovative loan with BNP Paribas is one of the ways in which we’re playing our part. By meeting sustainability targets to help fund our business we can cut the cost of our debt, further build our financial strength and free up more funds to achieve our ambition of providing more affordable homes and supporting our residents and customers to live well,” says Donald McKenzie, Director of Corporate Finance at MTVH.

MTVH has implemented measures including installing energy efficient technologies, aligning supplier environmental targets to a sustainable procurement policy and operational climate footprint monitoring. MTVH has a progressive carbon emissions reduction strategy and discloses both Scope 1 (direct) and Scope 2 (indirect) carbon emissions.

“MTVH has demonstrated that funding structures, commercial strategy and the demands of the climate crisis need not be at odds. As an active member of the Coalition for the Energy Efficiency of Buildings, BNP Paribas knows that decarbonising the built environment is essential for achieving net zero in the UK. In MTVH we found a partner whose understanding matches our own,” says Anne Marie Verstraeten, BNP Paribas UK Country Head.

ENDS

Notes to editors:

About BNP Paribas

About MTVH

Metropolitan Thames Valley (MTVH) is one of the UK’s largest housing associations, providing affordable homes, and care and support services. It owns, manages or administers around 57,000 homes across London, the South East, East Midlands and East of England.

MTVH was formed in October 2018 when Metropolitan and Thames Valley Housing came together as a new group. It is a member of the National Housing Federation and the g15, which represents London’s largest housing associations and houses one in ten Londoners. MTVH believes everyone should have a home and the opportunity to live well.

MTVH corporate website is mtvh.co.uk and you can follow on Twitter @MetTVH

For more information contact:

Lee-Anne Smith +44 07702 532951 Lee-Anne.Smith@mtvh.co.uk

Hugh McCafferty +44 7738 714102 Hugh.McCafferty@mtvh.co.uk

Sarisher Mann (UK) +44 7469 403 542 Sarisher.Mann@uk.bnpparibas.com

BNP Paribas closes its First Sustainable Deposit with Unilever

London, 09 November 2020 – BNP Paribas announced today that it has closed its first Sustainable Deposit with leading consumer goods group Unilever marking the start of the roll out of this innovative offer to corporate clients in EMEA.

BNP Paribas recently developed a Sustainable Deposits Framework which was independently reviewed by Vigeo Eiris (V.E.), who gave the framework a reasonable assurance (V.E.’s highest level of assurance).* Sustainable Deposits are aimed at enhancing BNP Paribas’ capacity to increase the amount of investment and financing contributing to the energy transition and to sectors considered as directly supporting the UN’s Sustainable Development Goals as part of its Environmental, Social and Governance (“ESG”) commitments.

Philip Sasse, Vice President, Global Treasury Operations at Unilever commented:

“ESG is an integral part of Unilever’s business strategy and as a Treasury team we work to support the delivery of our sustainable business goals across the full spectrum of Treasury activities, with a strong desire to contribute through ESG innovation. We are therefore delighted to have collaborated with a key banking partner such as BNP Paribas on their new Sustainable Deposit offering in order to pioneer the development of relevant solutions and drive positive ESG impact at scale.”

Aurelia Normand, Head of Transaction Banking EMEA at BNP Paribas also commented:

“The development of a Sustainable Deposits offering represents an opportunity to enhance BNP Paribas’ capability to raise short-term funds to support its lending to sectors with positive UN SDG impact while at the same time addressing a growing need from its clients to align their liquidity placement and investment practice with their sustainability objectives. As we prepare to deploy the offering across our geographies, with EMEA as a first step, we are very pleased to have closed our first Sustainable Deposit with Unilever.”

Ends

*V.E. was commissioned to provide an independent review on the sustainability credentials of the Sustainable Deposits Framework (“the Framework”) prepared by BNP Paribas Corporate and Institutional Banking (“the Bank”). V.E. expressed a reasonable assurance (their highest level of assurance) on the capacity of the Bank’s Sustainable Deposits to support loans which are likely to contribute to the identified UN SDGs. The review was dated 17 September 2020.

Press Contacts:

BNP Paribas

Murray Parker +44 (0) 7818 510 056 murray.parker@uk.bnpparibas.com

Notes to Editors:

About BNP Paribas

12 August 2020, London

Exane BNP Paribas ranked in first place in all headline categories as results of the 2020 All-Europe Research Survey from Institutional Investor (II) announced.

This top performance confirms Exane BNPP’s position as the leading platform in European equities, following three consecutive #1 positions in the previous Extel Survey.

2020 has not been a normal year with lockdown disrupting the voting period and a completely different competitive landscape following the merger of the two major investor surveys (Institutional Investor & Extel). For the first time, every bank was focused on the same survey under a methodology which was primarily based on the previous II approach.

In the main categories, Exane BNP Paribas ranked:

#1 Developed Europe Industry Research (1st weighted by rankings and joint 1st on an unweighted basis)

#1 Developed Europe Research (1st weighted by rankings and joint 1st on an unweighted basis)

#1 Analyst-Based Leader (48 analysts ranked Top3 + RU*)

#1 Specialist Sales (29 positions as Top3 + RU)

#1 Sales Overall

#2 Corporate Access (from investors)

#1 Country Research o.w. #1 for France Overall Country Research

In Industry Research, Exane BNP Paribas ranked in 1st place in 15 of the 30 sectors and in the Top 3 in 24.

Ben Spruntulis, head of cash equities at Exane BNP Paribas commented: “We are delighted that our clients have once again voted Exane BNP Paribas as Europe’s top Equities advisory franchise. With 15 teams ranked #1 in their sector, this underlines the outstanding quality and breadth of our research platform. We’re extremely grateful to our clients for their support and proud to see the hard work and dedication of our exceptional people recognised in our industry’s definitive survey.”

Renaud-Franck Falce, head of capital markets in EMEA at BNP Paribas said: “BNP Paribas has an outstanding Equity franchise that is well known to our Corporate and Institutional clients and we are delighted with the superb recognition of Exane BNP Paribas in today’s Extel Institutional Investor Survey, which highlights such continued strength.”

Ends

Press Contacts

Sarah Shephard sarah.shephard@uk.bnpparibas.com +44 (0) 7468 471 044

BNP Paribas CIB on Twitter – @BNPParibasCIB

About BNP Paribas

BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.

To find out more on what BNP Paribas is doing on Climate Action, please visit:

https://group.bnpparibas/en/hottopics/climate-actions/briefing

The Value of Capital Markets to the UK Economy

London 21^st May 2020

The latest report from New Financial shows how central capital markets are to the day-to-day functioning of the UK economy with more than 90% of large UK companies using them.

The report underlines how capital markets have a vital role to play in supporting the UK economy through the Covid-crisis – and in fuelling an economic recovery in the coming years.

For most people around the country, what goes on in the City of London and the financial markets seems remote, complex, and disconnected from their everyday lives and the day-to-day economy. The independently researched report by New Financial was supported by BNP Paribas, and set out to analyse how relevant and important capital markets are to UK companies, and how valuable capital markets are to the wider UK economy. The report found:

Capital markets are hugely relevant to UK plc and UK Ltd

More than 90% of large UK companies (those with revenues of more than £200m a year) use the capital markets to raise money, invest in or restructure their business, or to manage risk. That translates into around 1,000 large UK companies using the capital markets and a further 14,000 smaller companies.

The economic impact of the capital markets

The UK companies that use the capital markets have a big economic impact: they employ around eight million people in the UK (nearly a quarter of the total UK workforce). Large companies that use the capital markets account for nearly six million of the jobs in the UK (and they employ a further seven million people around the world.

Capital markets add vital capacity to corporate funding

UK companies raised around £750bn in the bond, equity and leveraged loan markets in the five-year period we analysed in the report (2014 to 2018) or around £150bn a year. That’s a big boost to annual flows of gross bank lending of around £300bn a year in the UK.

Capital markets & the Covid crisis

Much of the coverage of the financial services industry over the past few months has been around bank lending. We found that in response to the Covid crisis, from the middle of March to the end of April, nearly 150 UK companies raised around £30bn between them in the corporate bond and equity markets.

Sector-by-sector:

– Three quarters of large UK companies were involved in the M&A markets as buyers or sellers.

– At least 80% of large UK companies actively use derivatives to manage risk, with FX and interest rate derivatives the most frequently used

– Over 40% of large privately-held UK companies (ie. companies not listed on the stock market) are backed by private equity

– Nearly half of all large UK companies are listed on the stock market and around 45% of listed companies used the stock market to raise money in the five year period we analysed

You can download the full report here and a summary infographic here.

William Wright, the founder and managing director of New Financial, said:

‘This report provides the most comprehensive picture yet of the value of capital markets to the UK economy and how relevant they are to UK companies. It underlines that while bank lending plays an important role in supporting the economy, capital markets add much-needed diversity, speed, capacity and flexibility to funding for companies.

We started this project long before any of us had heard of coronavirus. In light of the Covid crisis, the report shows how capital markets can help companies access billions of pounds quickly. Given how important capital markets are today to UK companies and the UK economy, they will have to play a vital role in helping support the economy through this crisis and in fuelling an economic recovery.’

Anne Marie Verstraeten, UK country head at BNP Paribas Group, said:

‘Having an effective, purpose driven financial services industry is core to the functioning of the UK real economy. This report underscores just how vital access to capital markets is when it comes to supporting our UK companies, providing them with access to liquidity, investors, and to markets across the world.

Most recently, the COVID-19 health crisis has hit the economy hard and the capital markets have had to step up to support the economy and society in an urgent and meaningful way. The report shows during this time of crisis, a high volume of corporates have been active in the debt and equity capital markets, across a range of sectors.

And as we begin to look ahead to what will undoubtedly be an evolving new order it is evident that capital markets will continue to play a fundamental role in ensuring a sustainable and responsible recovery, centred on rebuilding a greener, fairer and more resilient economy.’

For more information on this report, please contact:

William Wright

Founder & managing director, New Financial

+44 20 3743 8269

william.wright@newfinancial.org

@NewFinancialLLP or @williamw1

Alexandra Umpleby

UK head of media relations

+ 44 7467 448 780

alexandra.umpleby@UK.bnpparibas.com

@BNPParibasUK

Here is a 10-point summary of ‘The value of capital markets to the UK economy’

The relevance of capital markets to UK companies: capital markets may seem abstract and remote from the day-to-day business of UK companies but we identified 1,000 large UK companies – or nearly 90% of all UK companies with revenues of more than £200m a year – that used the capital markets between 2014 and 2018 to raise money or help manage their risks. Many of these companies have already received or will rely on funding from the capital markets (in addition to bank lending) in the wake of the Covid crisis.
The value of capital markets to the UK economy: large UK companies that use the capital markets play a vital role in the UK economy. They employ nearly six million people in offices, factories, plants, shops and outlets across the UK – around one fifth of the private sector workforce – and a further seven million people overseas. Their combined revenues of £3.1 trillion are 50% bigger than the size of the UK economy.
Capital markets and smaller companies: capital markets are not just for big multinationals. We identified 14,000 smaller UK companies that use the capital markets – including around 900 smaller firms listed on the stock market – who between them employ more than two million people in the UK.
The stock market and the UK economy: nearly half of all UK companies with revenues of more than £200m are listed on the stock market. These 500 companies employ more than 3 million people across the UK and are worth a combined £2.7 trillion. Over 40% of these companies used the stock market to raise nearly £120bn. Since the middle of March nearly 100 UK companies raised £5bn on the stock market.
The bond market and the UK economy: more than a fifth of large UK companies (excluding financials) used the corporate bond market to raise £270bn, and these 230 companies employ around 2.3 million people in the UK. Nearly 200 companies used the leveraged loan market to raise another £215bn. Since the middle of March nearly 50 UK companies have raised around £25bn in the corporate bond market.
M&A and the UK economy: nearly three quarters of large UK companies used the M&A market either to buy another business, or to be acquired by another company, or sell part of their business. These companies employ nearly 5 million people in the UK, and a further 13,000 smaller companies were involved in M&A activity of some form. M&A will be a vital part of company restructuring in the wake of the Covid crisis.
Private equity and the UK economy: private equity has become an increasingly popular source of funding for UK companies. Nearly a third of large companies in the UK have been involved with private equity in some form over the past five years (either owned by private equity or acquired or sold by a private equity firm) and these companies employ just under two million people in the UK.
Derivatives and the UK economy: trading floors at big banks in London may seem a million miles away from the ‘real’ economy in the rest of the country, but more than 80% of large UK companies use derivatives in some form to help manage the risks in their day-to-day business, according to our analysis of annual reports. Derivatives are particularly valuable in the sort of volatile markets we have seen over the past few months.
Pensions and the UK economy: the most direct connection between the capital markets and individuals is their pensions. Large UK companies contribute around £25bn a year to their employees’ pensions with an average company contribution per employee of around £2,400 a year. Large UK companies have combined defined benefit pensions assets of around £750bn, which aggregates the pension savings of millions of people into a valuable pool of capital that can be put to work in the economy.
Framing the discussion: the banking and finance industry is an important economic sector for the UK in its own right, but its real value is the underlying role that it plays in oiling the wheels of the wider economy and helping companies and individuals raise capital and manage risk. This report underlines the importance of the capital markets to large UK companies – and to thousands of smaller companies – and the vital role they will need to play in supporting the UK economy through this crisis and in driving more long-term investment across the UK to fuel a recovery and boost productivity and growth.

Ends

Press Contacts:

BNP Paribas

Alexandra Umpleby +44 20 7595 2436 Alexandra.Umpleby@uk.bnpparibas.com

New Financial

William Wright +44 20 3743 8269 william.wright@newfinancial.org

About BNP Paribas

BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including around 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets, International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors.

BNP Paribas employs more than 9,000 people across 10 business lines in the UK. These include Corporate & Institutional Banking, Exane BNP Paribas, Leasing Solutions, Arval, Real Estate (including Strutt & Parker acquired in September 2017), Asset Management, Cardif Pinnacle, Commercial Finance, Personal Finance and Vauxhall Finance. Around half of its employees are in Corporate & Institutional Banking, based in London, while the others are based in various offices across the country, including Belfast, Birmingham, Cardiff, Glasgow, Manchester.
https://www.bnpparibas.co.uk/en/

About New Financial

New Financial is a capital markets think tank launched in 2014. We’re having a growing impact among senior industry leaders and policymakers across Europe on making the case the case for bigger and better capital markets. We’ve hosted more than 150 private events and published more than 40 in-depth reports. New Financial is a social enterprise funded by institutional membership from across the capital markets industry.

For more information, visit www.newfinancial.org

London 16th April 2020 – BNP Paribas’ UK arm today said it will direct a further £500,000 to supporting disadvantaged, vulnerable and isolated people impacted by the Coronavirus pandemic in the UK. This is in addition to £500, 000 committed last week to London’s Imperial Health Charity and brings the total amount of donations by the BNP Paribas group to over $55 million worldwide.

The bank will launch a number of initiatives across communities in the UK in which the bank operates. The initiatives which are aligned with the UN Sustainable Development Goals, include:

SDG 1 No Poverty, SDG 2 Zero Hunger and SDG 17 Partnerships

Supporting foodbanks, community and homeless shelters as well as existing charity partners

SDG 3 Good Health & Wellbeing

Supporting responses to vital mental health and well-being programs

SDG 4 Quality Education and SDG 10 Reduced Inequalities

Supporting families, young children and adults with vital care and digital tools for home based learning

The bank is also matching employee donations to these relief efforts. Employees have an opportunity to contribute through the BNP Paribas Rescue and Recover Fund, supporting Care International.

BNP Paribas UK Country Head, Anne Marie Verstraeten said:

“In less than a month, daily life for so many people has changed significantly. Working together we are indeed stronger and our hope is that we can help contribute relief, support and comfort to some of those people who are most in need in our local communities.”

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Press Contacts:

BNP Paribas

Alexandra Umpleby +44 20 7595 2436 Alexandra.Umpleby@uk.bnpparibas.com

Sarisher Mann +44 20 7595 8150 Sarisher.Mann@uk.bnpparibas.com

About BNP Paribas

About the Imperial Health Charity

The best way to support the appeal is to donate online at: www.justgiving.com/campaign/help-our-nhs

You can also donate by text. Text HELPTHENHS followed by the amount you’d like to donate to 70085.

So, text HELPTHENHS 5 to give £5, HELPTHENHS 10 to give £10, HELPTHENHS 20 to give £20.

For further advice on supporting the appeal, please email fundraising@imperialcharity.org.uk

London 9 April 2020 – BNP Paribas’ UK arm has today pledged £500,000 in philanthropic support to the London-based NHS Imperial Health Charity’s COVID-19 Relief Fund. The money will help London hospitals handle the extraordinary pressures triggered by the coronavirus pandemic. The Imperial Health Charity is based in Marylebone, near to BNP Paribas’ UK head office.

The funds will benefit the following five hospitals:
• Charing Cross Hospital
• Hammersmith Hospital
• Queen Charlotte’s & Chelsea Hospital
• St Mary’s Hospital
• Western Eye Hospital.

BNP Paribas UK Country Head, Anne Marie Verstraeten said:
“The COVID-19 virus is putting the NHS under extreme pressure. At this unparalleled and challenging time, we want to thank and help our NHS Heroes for their truly exceptional dedication to saving lives. Stronger together, as a community supporting each other, we will get through this.”

Imperial Health Charity CEO, Ian Lush said:
“In recent weeks we have seen the entire country come together to fight the coronavirus – and at the heart of this battle are our remarkable NHS staff who continue to work tirelessly, night and day, to protect us all from this unprecedented threat. During this extremely challenging period, we’re determined to do everything we can to help our hospital heroes as well as stepping up to support the most vulnerable patients in this time of crisis. We know we can’t do this alone. The scale of the challenge is enormous and this contribution from BNP Paribas will transform our capacity to respond to the coronavirus crisis and ensure we can provide the best possible support to our hospitals over the coming months.”

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Press Contacts:

BNP Paribas
Alexandra Umpleby +44 20 7595 2436 Alexandra.Umpleby@uk.bnpparibas.com
Sarisher Mann +44 20 7595 8150 Sarisher.Mann@uk.bnpparibas.com

About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including around 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets, International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors.
BNP Paribas employs more than 9,000 people across 10 business lines in the UK. These include Corporate & Institutional Banking, Exane BNP Paribas, Leasing Solutions, Arval, Real Estate (including Strutt & Parker acquired in September 2017), Asset Management, Cardif Pinnacle, Commercial Finance, Personal Finance and Vauxhall Finance. Around half of its employees are in Corporate & Institutional Banking, based in London, while the others are based in various offices across the country, including Belfast, Birmingham, Cardiff, Glasgow, Manchester.
https://www.bnpparibas.co.uk/en/

About the Imperial Health Charity
The best way to support the appeal is to donate online at: www.justgiving.com/campaign/help-our-nhs
You can also donate by text. Text HELPTHENHS followed by the amount you’d like to donate to 70085.
So, text HELPTHENHS 5 to give £5, HELPTHENHS 10 to give £10, HELPTHENHS 20 to give £20.
For further advice on supporting the appeal, please email fundraising@imperialcharity.org.uk

The sustainability linked structure is based on Clarion’s efforts to tackle unemployment among its residents

London, 30 January, 2020 – The UK’s largest housing association, Clarion Housing Group, announced it has recently secured a new 5-year £100 million revolving credit facility provided by BNP Paribas. The facility is structured as a sustainability-linked loan (SLL) where the margin is linked to Clarion achieving certain Social Key Performance Indicators (Social KPI).

The Social KPI measured is the number of people Clarion supports to find employment as a result of the Clarion Futures Jobs and Training programme. The success of the metric is measured during the immediate preceding financial year. Clarion will benefit from a lower interest rate margin on the loan, if it helps an agreed number of residents into employment.

The Clarion Futures Jobs and Training programme is delivered as part of Clarion Futures, the Group’s charitable foundation. It plans to invest £150 million over ten years to provide support, skills and opportunities to over 350,000 social housing residents across the UK. The SLL will be used to fund Clarion’s delivery of much-needed new homes.

Gareth Francis, Director of Treasury and Corporate Finance at Clarion, said: “Our successful jobs and training programme is the largest of its kind and last year helped over 4,000 people into employment. It is fantastic that banks such as BNP Paribas are recognising the impact of this work and providing funding at a lower interest rate, the savings from which we will reinvest back into providing new affordable homes and improving the lives of our residents. ”

David Reynolds, Senior Banker, UK Coverage, BNP Paribas, said: “The sustainability-linked loan mechanism is a powerful tool to support companies, communities and banks in applying innovation to tackle social and economic challenges, such as unemployment. This will be BNP Paribas’ fourth SLL in the sector. Almost half a million young people aged 16–24 are currently unemployed in the UK*, and finding innovative approaches to tackle this through collaboration between organisations is an important part of progressing sustainable development in the UK”.

* https://researchbriefings.files.parliament.uk/documents/SN05871/SN05871.pdf

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Press Contacts:

BNP Paribas
Alexandra Umpleby +44 20 7595 2436 Alexandra.Umpleby@uk.bnpparibas.com
Sarisher Mann +44 20 7595 8150 Sarisher.Mann@uk.bnpparibas.com

Clarion
Lucy Pond +44 207 378 5555 Lucy.Pond@clarionhg.com

Clarion Housing Group is the UK’s largest provider of affordable housing. We are committed to playing our part in tackling the housing crisis, both as a social landlord and developer of new housing.
More than 350,000 people call a Clarion home their home. Our mission is to provide and maintain good quality housing for our residents and to build communities through high quality design and placemaking.
We are a social business, reinvesting our profits into building new homes and providing support and opportunities to our residents through Clarion Futures, our charitable foundation.
www.clarionhg.com