Banks are now attracting “green” money through deposit products, which are destined to finance environmentally friendly investments.
First off the block in Greece was Eurobank with its “ESG Deposits.” Aimed at enterprises that want to place their short-term cash in deposit products, those funds will be used to finance sustainable investments and projects that promote green growth.
Eurobank announced that 50 of its regular business clients have already expressed an interest in the new product, which has resulted in the original target for 200 million euros being oversubscribed more than twice. These funds will be utilized in the lender’s Sustainable Finance Framework.
ESG (environmental, social and governance) funds are now an obligation of banks, which as of 2022 will also be monitored by their supervisory authority as regards its adoption. Besides the common practice of corporate loans, banks will expand to lending to individuals, introducing sustainability criteria, including for mortgages at more favorable interest rates.
The country’s four systemic banks are already offering lower rates for loans to companies that fulfill the ESG criteria, regardless of their sector.