Offerings include risk-sharing solution with EDC, will support corporate banking clients in advancing their sustainability goals while delivering on RBC's commitment to provide
"Climate change is one of the most pressing issues of our time. At RBC, we are committed to helping businesses across sectors and regions accelerate their climate goals, prepare for an orderly transition to a net-zero future, and support their social objectives," says
RBC-EDC Sustainable Financing
Through a risk-sharing, pilot solution with
RBC's collaboration with EDC will open up funding to companies in a variety of sectors, with financing available for eligible green activities, as defined in RBC's Sustainable Finance Framework. Eligible activities are those that address key environmental objectives, including but not limited to climate change mitigation, climate change adaptation, biodiversity and ecosystem protection, sustainable use and protection of water and marine resources, pollution prevention and control, and the circular economy.
EDC will guarantee 50 per cent of an RBC term loan – up to a maximum of
"EDC's goal with sustainable financing is to enable real progress towards a more sustainable future," said
In addition to the RBC-EDC Sustainable Financing Guarantee, the bank also offers the following sustainable finance products:
Sustainability-Linked Loans
This solution incentivizes and supports businesses in working towards their climate or social objectives by tying the terms of the finance agreement to their achievement of pre-determined sustainability targets.
Companies will set ambitious sustainability performance targets that relate to the borrower's core sustainability and business strategy. Companies will be required to track and report progress towards these targets, as measured by predefined Key Performance Indicators, with adjustments in the loan's interest rate made upon achievement of these targets.
Green Loans
RBC's Green Loans offer financing to businesses for a broad range of green projects that are intended to achieve environmental benefits, including but not limited to initiatives that help clients reduce their emissions, address natural resources depletion, loss of biodiversity, and air, water and soil pollution.
RBC Sustainable Finance Framework
Criteria for transactions classified as eligible towards RBC's commitment to provide
Corporate banking clients interested in learning more about RBC's sustainable financing solutions should contact their RBC Relationship Manager to assess the solutions that work best for their business needs, and for more information about the eligibility criteria and application process.
For more information about our strategy to support our clients in sectors across the economy in a socially inclusive transition to net-zero, and the risks and opportunities we face, visit rbc.com/climate.
About RBC
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this press release include, but are not limited to, statements relating to
By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our objectives, vision, commitments, goals, targets and strategies to mitigate and adapt to climate-related risks and opportunities, and our objectives, including our net-zero commitment and sustainable finance commitment, will not be achieved and that our actual results may differ materially from such predictions, forecasts, projections, expectations or conclusions. Moreover, many of the assumptions, standards, metrics and measurements used in preparing this press release continue to evolve and are based on assumptions believed to be reasonable at the time of preparation, but should not be considered guarantees.
We caution readers not to place undue reliance on these statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors – many of which are beyond our control and the effects of which can be difficult to predict – include the need for more and better climate data and standardization of climate-related measurement methodologies, our ability to gather and verify data, our ability to successfully implement various initiatives throughout our enterprise under expected time frames, the risk that initiatives will not be completed within a specified period or at all or with the results or outcomes as originally expected or anticipated by us, difficulty in identifying transactions, products and services that meet the sustainable finance classification criteria, the risk that eligible transactions or related initiatives will not be completed within any specified period or at all or with the results or outcome as originally expected or anticipated by us, our ability to track transactions and report on them as performance against our commitment to provide
We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. Except as required by law, none of RBC or its affiliates undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.
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