BNP no longer doing bond deals for oil and gas

“With regard to bonds,” BNP said that it refrains from “participating in conventional bond issues in the oil and gas sector”. — Bloomberg

Paris: BNP Paribas SA says it’s no longer participating in conventional bond issuances in the oil and gas sector, as the European Union’s largest bank adds to its list of restrictions on fossil-fuel clients.

BNP spelled out the status of its policy in response to written questions from Paris-based nonprofit Friends of the Earth-France, which were submitted ahead of its annual general meeting.

The bank has previously imposed a ban on financing the development of new oil and gas fields, and said it would phase out financing for companies specialised in oil exploration and production.

“With regard to bonds,” BNP said that it refrains from “participating in conventional bond issues in the oil and gas sector”, according to its written response. The bank has previously said it hasn’t participated in any conventional bond issuances in the oil and gas sector since the middle of February last year.

In an emailed comment to Bloomberg, BNP confirmed it’s not participating in “conventional bonds issuance to companies active in upstream oil and gas”.

BNP has gradually been limiting oil and gas clients’ access to financing as the bank contends with ever stricter environmental, social and governance regulations as well as a lawsuit brought by climate nonprofits last year.

At the same time, BNP has continued to step up its presence in green finance, and is now the biggest underwriter of green bonds globally, according to Bloomberg data.

In its response to Friends of the Earth, BNP said it is also “gradually reducing the share of general credits granted to large integrated energy companies, attributable to the exploration and production of hydrocarbons”. — Bloomberg