ABN AMRO Sustainable Impact Fund invests in INNAX
ABN AMRO is acquiring a stake in INNAX through its Sustainable Impact Fund (SIF). INNAX is a Dutch company that advises clients and offers solutions for improving the sustainability of buildings, for example by making them more energy-efficient.
INNAX is celebrating its 30th anniversary this year. In the past three decades, INNAX has grown to become a major player in the market for improving the sustainability of buildings. The company employs around 250 people and has growth ambitions. Frederik Deutman, co-head of ABN AMRO SIF: “We know INNAX well because the bank has worked intensively with it for several years to Paris-proof its own buildings. The opportunity arose to acquire shares in INNAX and we seized it. We are also making growth capital available. INNAX is a wonderful, established company that is active in a market with great potential and that fits in well with the scope of the Sustainable Impact Fund.”
Philip Blaauw, director and founder of INNAX: “We are very pleased with SIF’s investment and look forward to working with them and ABN AMRO to live up to our mission: to help improve the sustainability of the built environment. Together we can create sustainable impact on the urgently needed steps required to put eco-friendly intentions into action.”
ABN AMRO sells head office to Victory Group for EUR 765 million
ABN AMRO announced that it has reached agreement with real estate investment firm Victory Group regarding the sale and leaseback of the bank’s head office at Gustav Mahlerlaan in Amsterdam. The intended sale of the building, also known as Gustav Mahler, was announced in November 2020, as was the redevelopment of the bank’s current office at Foppingadreef in South-East Amsterdam into a new sustainable home base from 2025.
Victory Group is partnering with G&S Vastgoed in a consortium. Both parties have a good track record, individually and together, which makes them a reliable partner for the city and for the bank. Victory Group will pay EUR 765 million for the Gustav Mahler building, taking into account the favourable lease conditions for the coming years when ABN AMRO will lease back the entire building during the redevelopment of the Foppingadreef offices. The refurbishment is expected to be completed in 2025. After completion, most ABN AMRO staff will move to the new home base in South-East Amsterdam and the bank will lease part of the Gustav Mahler building, which will remain its official head office and commercial branch office. The transaction will result in a pre-tax profit of EUR 338 million, which will be booked in Q4 of 2021.
The sale of the Gustav Mahler building marks the end of a careful process in which several parties submitted plans and bids. As part of the tender process, ABN AMRO took into account the wishes of the city of Amsterdam with regard to the future liveability and diversity of the Zuidas business district. As a future tenant of part of the redeveloped building, ABN AMRO has set specific sustainability criteria for the buyer’s plans and for the reuse of our circular landmark pavilion Circl.
A small team in ABN AMRO’s Corporate Banking client unit has arranged the financing for this real estate transaction.
ABN AMRO CEO Robert Swaak: ‘As one of the founders of Amsterdam’s still young Zuidas business district we feel a great responsibility for its future. The plans Victory Group and G&S Vastgoed have presented for the redevelopment of our head office and the addition of functions to the district will evolve the Zuidas into a more mature residential and business district with a distinctive sustainable character. We will work hard in the coming period to redevelop our office at Foppingadreef in South-East Amsterdam into a ‘beyond Paris-proof’ new home base. Looking ahead as the bank’s CEO, I am very proud that ABN AMRO will remain a permanent resident of these two superb locations in the city for many years to come.’
ABN AMRO Bank – Simplified organisational structure and appointment Executive Board members ratified
After the close of the Extraordinary General Meeting (EGM) on 24 November 2021, Choy van der Hooft-Cheong, Dan Dorner and Gerard Penning were appointed as members of the Executive Board of ABN AMRO Bank N.V.
The appointments, announced on 11 October 2021, were subject to regulatory approval and to consultation with the bank’s shareholders and holders of depositary receipts. Both conditions have been met.
The simplified organisational structure was also discussed at the EGM. Three client units – Personal & Business Banking, Wealth Management and Corporate Banking – will replace the four existing business lines. This was also announced on 11 October 2021.
Chief innovation officer Annerie Vreugdenhil to leave ING to join Executive Board of ABN Amro
ING announced that Annerie Vreugdenhil, head of ING Neo and chief innovation officer, will leave ING to join the Executive Board of ABN Amro as chief commercial officer Personal & Business Banking. Annerie will leave ING as of 31 December 2021 and will start at ABN Amro on 1 March 2022, subject to regulatory approval.
Steven van Rijswijk, CEO of ING said: “Innovation is and remains of key importance to us as we continuously seek to improve the way we serve our customers. Over the past years, Annerie was instrumental in reshaping ING’s innovation approach, leading the effort to combine all innovation activities into one dedicated business area called ING Neo. We regret to see Annerie leave, but congratulate her on the opportunity offered. I want to thank her for her contribution to ING and wish her well.”
Until a permanent successor is appointed, Jeroen Plag will take on the additional role as head of ING Neo and chief innovation officer ad interim, next to his tasks as head of Corporate Strategy.Jeroen is in his current role already closely involved in ING Neo’s strategic activities like the Innovation Fund, ING Ventures and the positioning of the value spaces. He will be working closely with Annerie and her management team to ensure a smooth transition.Prior to his current position, Jeroen was Head of Corporate Client Coverage Europe, UK & Middle East. Jeroen started working with ING in 1994 and has held different senior positions worldwide.In 1992 Annerie started at ING and held various positions, which amongst others revolved around maintaining and expanding relationships with clients in ING’s Wholesale Banking division, before being appointed as Head of ING Neo and Chief Innovation Officer in 2021.
ABN Amro: Βελτιωμένα κέρδη το γ΄ τρίμηνο
Βελτιωμένα κέρδη για το γ΄ τρίμηνο του έτους ανακοίνωσε η ABN Amro, παρόλο που τα έσοδα και το λειτουργικό της αποτέλεσμα μειώθηκαν.
Η ολλανδική τράπεζα εμφάνισε καθαρά κέρδη 343 εκατ. ευρώ για το τρίμηνο μέχρι τις 30 Σεπτεμβρίου, υψηλότερα από τα 301 εκατ. ευρώ πριν από ένα χρόνο, αλλά χαμηλότερα από τα 393 εκατ. ευρώ στο β΄ τρίμηνο του 2021.
Τα λειτουργικά κέρδη μειώθηκαν 21% σε ετήσια βάση, στα 1,73 δισ. ευρώ, ενώ το λειτουργικό αποτέλεσμα διαμορφώθηκε 49% χαμηλότερα, στα 432 εκατ. ευρώ.
«Οι εξελίξεις στο γ΄ τρίμηνο ήταν ενθαρρυντικές. Η ολλανδική κοινωνία έχει ανοίξει σε μεγάλο βαθμό και η κυβερνητική στήριξη έχει αποσυρθεί, αν και η αύξηση των κρουσμάτων παραμένει μια ανησυχία», ανακοίνωσε ο διευθύνων σύμβουλος RObert Swaak.
ABN AMRO announces closing of the sale of Maas Capital
ABN AMRO announced the sale of Maas Capital, an independent subsidiary of the bank, to investment vehicles managed by EnTrust Global. This transaction was completed on 20 October 2021.
The Maas Capital portfolio consists of controlling and non-controlling stakes in shipping, intermodal and offshore services related assets.
The closing of the sale will have a modest net positive impact on ABN AMRO’s Q4 capital ratios and is another step in the winddown of the bank’s non-core activities, as announced in August 2020. Going forward, ABN AMRO’s equity investment activities will focus on sustainability, digitalisation and other corporate investments.
Source: ABN AMRO
ABN AMRO reports net profit of EUR 393 million in Q2 2021
Operating performance in line with previous quarters; net impairment release of EUR 79 million
Return on equity of 7.6% in spite of continued pressure on net interest income and incidentals
Society gradually opening up; Dutch economy holding up well as government support continues
Well ahead of plan in CIB non-core wind-down; over 80% reduction, supported by loan disposals
Full-year cost of risk expected to be well below the through-the-cycle guidance of 25-30 bps
Very strong capital position, Basel CET1 ratio of 18.3% (Basel IV around 16%)
Final 2019 dividend of EUR 0.68 per share to be paid in October 2021
Making progress in executing our strategy to be a personal bank in the digital age
Robert Swaak, CEO, comments:
‘Society is gradually opening up as vaccination programmes across Europe are steadily progressing and restrictions are easing. Extensive government support measures have enabled the Dutch economy to hold up relatively well. As a result of the improved macroeconomic outlook we again saw a release of impairments in the second quarter. Demand for corporate loans in the Netherlands is still muted as strong government support continues, but it is showing signs of stabilising and the pipeline is improving.
We are making progress in executing our strategy to be a personal bank in the digital age serving clients where we have scale in the Netherlands and Northwest Europe. We are well ahead of plan in the wind-down of the CIB non-core portfolio which has been reduced by over 80% since Q2 2020, supported by loan disposals. We are focusing on attractive segments where we can grow profitably, bringing convenience into the daily lives of our clients and expertise when it matters. In mortgages we are broadening our intermediary offering by repositioning our online label Moneyou as a competitively priced mortgage provider. Sustainability is core to our purpose and we are making good progress in increasing the volume of sustainable client loans; the target of 21% by 2021 has already been met. We are building a future-proof bank by rigorously simplifying and centralising our operating model, delivering a better experience for our clients. This year we are investing in strengthening our foundation, expanding our digital and data capabilities to enable our new client engagement model. Meanwhile we expect to reduce the current portfolio of around 1,300 products by at least 50% by 2024.
We reported a net profit of EUR 393 million for the second quarter, delivering a 7.6% return on equity (11.1% excluding CIB non-core) in spite of continued pressure on net interest income and incidentals. Operating performance was in line with previous quarters and asset quality is strong. Our mortgage portfolio grew while the corporate loan book for the core bank remained stable. We continued to focus on cost reductions as part of our goal of achieving EUR 700 million in cost savings by 2024. Impairments showed a net release of EUR 79 million for the second quarter as the macroeconomic outlook improved and the wind-down of the CIB non-core portfolio progressed. We expect cost of risk for the bank for 2021 to be well below the through-the-cycle guidance of 25-30 basis points.
Our capital position remains very strong, with a Basel III CET 1 ratio of 18.3% (Basel IV around 16%). As the ECB will not extend its recommendation on dividend distributions beyond September, we will pay the final 2019 dividend of EUR 0.68 per share in October 2021. We are committed to resuming payment of dividend at a ratio of 50% of net profit.’
ABN AMRO: New lending platform connects Dutch mid-sized companies with institutional investors
ABN AMRO and Bishopsfield Capital Partners introduce digital lending platform Aymz.
– Businesses state their credit requirement on the platform; institutional investors indicate the financing terms they are willing to offer
– This creates an additional source of financing for medium-sized companies
– Institutional investors get professional and efficient access to opportunities to finance Dutch companies
Aymz is live as of today, focusing initially on real estate companies with a borrowing requirement of five to thirty million euros. The platform will widen its scope to include other sectors at a later stage.
Growth financing
Businesses that want to grow, need various forms of financing. Organising this and finding financing partners can be a challenging, intensive process. The digital lending platform Aymz offers a solution. Together with their ABN AMRO relationship manager, business owners can upload their profile and borrowing requirements onto the platform. Institutional investors can see this information on the platform and indicate the interest rates and other financing terms they would like to offer. ABN AMRO will provide part of the financing alongside the investor.
Connecting companies to capital
Daphne de Kluis, CEO of Commercial Banking at ABN AMRO: “We want to provide loans to as many businesses as possible. In some situations more financing options open up if another investor participates alongside ABN AMRO. Many institutional investors are keen to finance Dutch mid-sized companies, but the practicalities around these investments are often complex and time-consuming if they act on a standalone basis. This new platform removes those problems. As a true relationship bank, we are proud to play a role in connecting companies with institutional investors through Aymz.”
Access through an efficient platform
Steve Curry, Founding Partner of Bishopsfield Capital Partners: “Institutional investors such as pension funds and insurance companies are playing an increasingly important role in the debt markets. Aymz is an efficient platform for medium-sized commercial clients to access an additional, new source of financing.”
ABN AMRO launches 425 million euro fund for sustainable impact companies
ABN AMRO is proud to announce the Sustainable Impact Fund (SIF), a fund investing in companies accelerating the transition towards a sustainable and inclusive society.
ABN AMRO SIF will make private equity investments of 4 to 30 million euros in companies that have a proven business model and that are ready for the next phase of their growth. The fund will also make venture capital investments ranging from 500,000 euros to 4 million euros in companies with a proven concept. Three themes have been selected for these investments: the circular economy, the energy transition and social impact. The fund, which is owned and funded by ABN AMRO, has its own investment policy and will pursue a combination of social and financial returns.
Equity capital
Rutger van Nouhuijs of ABN AMRO’s Executive Committee explains, “Our bank finances countless sustainable initiatives, in the form of loans and credit. However, in some situations, companies need equity investments. Our new fund is able to offer this as a solution. Companies that link sustainable returns to a strong business plan can apply to ABN AMRO SIF.”
Smartglasses, wind turbines and sustainable urban logistics
The new fund made its first two venture capital investments last month, in Envision and Foodlogica. Envision is a Dutch company that develops software for ‘smartglasses’. Combined with an app and innovative AI technology, the glasses translate images and written text into sound to make life more accessible for the visually impaired. Foodlogica solves the challenge of last-mile transport of refrigerated food in densely populated cities with a sustainable fleet that is free of greenhouse gas emissions. Fiberline Composites A/S also recently received private equity funding. This Danish company is developing a specific technology to increase the size of rotor blades for wind turbines. This investment was made by the Energy Transition Fund, which becomes part of ABN AMRO SIF.
The Netherlands and other countries nearby
In terms of geography, the new fund will focus on the Netherlands, but also companies from other countries in Northwestern Europe are eligible for investments. The fund reflects ABN AMRO’s strategic direction, which includes sustainability and a European focus as its key components.
New and mature companies
With the fund investing both private equity and venture capital, early-stage enterprises as well as established companies qualify for investment through this fund. Rutger van Nouhuijs adds, “What we want is to provide a solid financial basis for companies with potential that will help to accelerate the transition towards a sustainable society.”
ABN AMRO to sell portfolio of energy loans
ABN AMRO has agreed to sell a portfolio of energy loans to funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and affiliates of Sixth Street Partners (“Sixth Street”). Oaktree and Sixth Street are jointly acquiring the portfolio, which consists of loans to approximately 75 companies active in the North American energy markets. The total volume of the portfolio is around 1.5 billion US dollars (as at 31 March 2021).
As a result of the sale, ABN AMRO withdraws from oil and gas related lending in North America. Oaktree and Sixth Street together will assume all current commitments, following client consent, of around 3 billion US dollars (total committed and uncommitted loans as at 31 March 2021).
The sale further accelerates the wind-down of ABN AMRO’s non-core activities, as announced in August 2020, significantly reducing the non-core loan book.
On aggregate, the loans will be sold at a discount to book value of approximately 135 million euros while reducing RWAs by around 2 billion euros, resulting in a net positive impact on capital ratios in Q2 2021.