BNP Paribas exits bond deals for new ventures

Higher restrictions: A customer uses an ATM outside a BNP Paribas branch in Paris. The bank has promised to cut its financing of gas production by over 30%. — Bloomberg

LONDON: BNP Paribas SA will no longer help arrange bond deals if the issuer intends to use the proceeds to finance new fossil-fuel exploration and production.

The development means bond syndications and debt capital markets deals associated with projects for producing more oil and gas (O&G) are now off-limits for the largest French bank, according to a person familiar with the guidelines who asked not to be identified because they’re not authorised to discuss the matter in public.