Green FX hedging tipped to grow after BNPP/Siemens Gamesa deal

If the energy company misses ESG score it will pay a “sustainability premium” towards forestry projects

green trading - eco - Getty
Eco trading: the rate on the facility will be linked to the sustainability rating of the energy engineering company

Foreign exchange hedging contracts for sustainable transactions are expected to grow, as the first such deal between BNP Paribas and renewable energy firm Siemens Gamesa has set a benchmark for corporates and banks. 

BNP Paribas partnered the Spanish company on a €174 million contract in late October, hedging Siemens Gamesa’s FX exposure related to a windfarm-construction project in Taiwan. It is the first FX hedging deal arranged under the French bank’s new sustainable derivatives platform

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