Deutsche Bank and consumer credit provider Home Credit Philippines (Home Credit) have entered into an innovative environmental, social and governance (ESG) loan in the Philippines with strong goals linked to “S” considerations Or social, which represent an important step forward in the development of ESG financing.
The short-term loan facility establishes clear metrics and key performance indicators (KPIs) with respect to ESG considerations, as well as concrete targets for the metrics Home Credit is committed to achieving over the life of the loan. .
Key performance indicators focus on expanding access to credit to underserved communities in the Philippines, including women and first-time borrowers, and increasing the supply of education programs financial in the Philippines.
The deal also has goals around Home Credit’s digitization efforts, committing it to provide at least 60% of its loans through digital channels, in order to provide a higher level of transparency to customers and to enable rates and fairer loan terms for clients, regardless of their economic or social context.
Additionally, KPIs track data to confirm Home Credit’s commitment to protecting the privacy of its customers’ data and to ensuring that data is only used by Home Credit for agreed purposes. These KPIs will be measured and verified by an independent third party advisor. The loan complies with the sustainability lending principles of the Asia Pacific Loan Market Association.
“With the KPIs associated with this loan facility, we are even better positioned to continue to provide fair and transparent access to financial services for the communities in which we operate,” said Jean Lafontaine, Head of Finance, Treasury, mergers and acquisitions and investor relations. to Home Credit.
“This is a pioneering transaction reflecting the shift from consumer lending in Asia to responsible and sustainable lending,” adds Kamran Khan, Deutsche Bank’s ESG manager for Asia Pacific. “It is also changing the ESG landscape by demonstrating that beyond environmental considerations, funding can also be significantly linked to social impact objectives, which in this case have a strong focus on financial inclusion. This is an emerging and important area of ESG, especially in Asia, where both the need and the opportunity to have an impact are great. “