The voting on Sustainable Bank of the Year resulted in a split decision between ABN AMRO and Barclays, and was decided through a casting vote in favour of ABN AMRO by the co-chairmen of the judging panel.

WINNER - ASIA: ABN AMRO India

WINNER – EASTERN EUROPE: Dexia Banka Slovensko

WINNER – MIDDLE EAST & AFRICA: Nedbank

Sustainability is about ensuring financial prosperity and stability for our investors and staff, integrating social and environmental responsibility for our local communities and the countries in which we operate, and remaining relevant and accessible to our clients. Sustainability has become a key driving force during the revival of Nedbank Group, underpinning the long-term targets that have guided our progress over the past three years, and constituting the foundation of our cultural transformation programme. Sustainability is a crucial part of the Nedbank culture, as evidenced by a range of commitments, including our Green Trust partnership with the World Wide Fund for Nature - South Africa (WWF-SA), which has now raised more than R75 million for community conservation and remains an iconic example of the benefits offered by partnerships between business and the non-profit sector. The group environmental policy continues to guide our approach not only to our own operations, but also to our lending and financing practices and includes our commitment to the Equator Principles. We continue to work closely with the United Nations Environment Programme on local and international environmental and sustainability projects and welcome the opportunity to be part of a concerted response to challenges such as climate change and biodiversity protection.

Comments from the judges:

“They have a superb team in place… and the passion of the individuals is pushing the bank forward.”

Sustainable Bankers of the Year

WINNER: Banamex/Citi-Compartamos

Banamex, a member of Citi, partnered with Compartamos Bank, Mexico’s leading microfinance provider, through its insurance subsidiary Seguros Banamex, to design and launch a life insurance product for micro-entrepreneurs. Banamex/Citi–Compartamos micro-insurance is affordable and provides an adequate sum to the beneficiary in case of death of the policyholder. Unlike other micro-insurance initiatives, this product is not credit insurance; the entire benefit amount is paid directly to the beneficiary. It also provides solid data on a previously unexplored market segment, which will, in time, improve accuracy of pricing decisions and hopefully drive down premiums. By offering a simple, transparent product with no exclusions and the lowest claim-to-payment time in the market, Banamex/Citi–Compartamos have overcome the distrust of traditional insurance common among potential clients. More than 550,000 policies, or over 8 per cent of the total in Mexico, have been added in the first year of operation – most of them involving self-employed rural women who had never been insured. Seguros Banamex has seen its share of micro-entrepreneur clients grow from nothing to 50 per cent in the first year. This effort has contributed to the widening acceptance that microfinance should be embedded in the traditional businesses of mainstream financial institutions, as it is at Citi today.

Comments from the judges:

“The sheer volume of what they are shifting is fantastic.”

RUNNER-UP: Center-Invest Bank

Dr. Vasily Vysokov and his team at Center-Invest Bank were the first participants in the IFC Russia Sustainable Energy Finance Programme. At Dr. Vysokov’s personal initiative, Center-Invest Bank dedicated substantial resources to developing energy efficiency finance as a product and promoting it in Southern Russia. Center-Invest Bank took a US$4m dedicated energy efficiency loan from IFC in April 2006 and within a month had used all of the funds for energy efficiency. The bank’s clients have been diverse -- a pig farm, candy factory, vegetable oil producer, printing company, and a couple of bakeries, to name a few. The average payback for these investments was about two years, and the projects financed to date generate 15,757 tons of CO2 savings per year. Center-Invest Bank continues to finance projects on its own account and currently has a deal pipeline of about US$10m. In addition, the bank has an investment in a heating company in the city of Taganrog that is improving the supply of heat to residents while lowering prices due to investments in energy efficiency equipment. Dr. Vysokov estimates that the bank could allocate another US$80m to energy efficiency finance in the next few years in Southern Russia.

Comments from the judges:

Sustainable Deal of The Year

The International Finance Facility for Immunisation (IFFIm) is a new multilateral development body that for the first time enables capital markets to provide grants, not loans, to recipient countries – in this case to fund immunisation efforts. Currently backed by commitments of up to 20 years from France, Italy, Norway, Spain, South Africa, Sweden and the UK, IFFIm allows the efficient front-loading of these commitments to fund immunisation programmes of the GAVI Alliance in 70 of the world's poorest countries. Uniquely IFFIm was established as a UK charity with the World Bank as its Treasury Manager. Qualifying programmes are approved for grants by an independent board with stringent approval and monitoring processes provided by the GAVI Alliance. IFFIm, which is rated AAA/Aaa/AAA, launched its inaugural US$1 billion benchmark in November 2006, lead-managed by Deutsche Bank and Goldman Sachs. Investors demonstrated strong support for its innovative structure and development mission. IFFIm will return periodically to the market over the next 10 years to fund a targeted US$4 billion programme. WHO estimates that through IFFIm, 500 million children will be vaccinated and 10 million lives saved, making an unprecedented contribution to achieving the Millennium Development Goal of reducing child mortality by two-thirds by 2015.

Comments from the judges:

“Just look at the numbers.”

RUNNER-UP: Industrial Bank

Industrial Bank’s China Utility-based Energy Efficiency Finance Program, backed by IFC, aims to reduce greenhouse gas emissions in China. Under the Program, Industrial Bank offers tailor-made financing tools to support industrial, commercial and residential entities implementing energy efficiency improvement projects and use of cleaner fuels and renewable energy. The bank is also working with a vast network of marketing partners, including energy service companies, utilities, energy efficient equipment vendors and the government, to generate deal flows. For a bank headquartered in Fuzhou, a place whose name is little known to the outside world, making the commitment to finance a new and under-developed sector was a huge step forwards. It shows our strong belief that the business of a financial institution is only sustainable if it helps makes life sustainable. We are committed to implementing 'green' banking. In less than six months, Industrial Bank has already financed nine projects with a total loan amount of US$17 million. The implementation of these nine projects will help China reduce greenhouse gas emissions by more than 2 million tonnes of CO2 and equivalent.

Comments from the judges:

“Can’t argue against this type of emissions reduction.”

Achievement in Carbon Finance

WINNER Raiffeisen Zentralbank

Raiffeisen Zentralbank (RZB) financed the world’s first nitrous oxide (N2O) emission reduction project at a nitric acid plant under the United Nations Framework Convention on Climate Change (UNFCCC). It is also the first Clean Development Mechanism (CDM) project in Egypt and the largest Greenhouse Gas Emission Reduction project in Africa. A new tail gas treatment unit was implemented and commissioned at the Abu Qir Fertiliser Co´s nitric acid plants in Egypt in September 2006. More than 99 per cent of N2O will be abated, corresponding to an annual CO2 reduction of over 1.4 million tonnes. This amount will be converted into Certified Emission Reductions (CERs) reserved for carbon neutrality trading. For the first time in such a project, cash flow will be solely generated through the sale of emission certificates. The project developer and the project operator agreed to allocate a 3 per cent share of the total income from selling of the CERs to a social fund. This fund will benefit the people living in the area of Abu Qir by financing sustainable projects in schools, hospitals and infrastructure. The project developer also financially supports the Egyptian Environmental Affairs Agency on sponsoring further sustainable projects.

Comments from the judges:

“An outstanding transaction.”

RUNNER-UP: Banco Sumitomo Mitsui Brasileiro

Banco Sumitomo Mitsui Brasileiro S.A. (BMSB), the subsidiary bank of Sumitomo Mitsui Bank Corporation in Brazil, carried out a pioneering certified emission reductions (CERs) transaction involving more than 10 small- to medium-scale Clean Development Mechanism (CDM) projects. The substantial transaction involved the transfer of around 1.5 million tonnes of CERs, derived from a broad range of CDM sources including small hydroelectric, bagasse cogeneration and methane avoidance projects, from Brazil to Japan. This is considered the first transaction of its nature, within the newly formed carbon market, as CERs generated from several diverse CDM projects were simultaneous negotiated for between two countries. The transaction introduced by BMSB presented an opportunity to Brazilian medium- and small-scale project developers to commercialise their CERs in conjunction with a major Japanese utilities company, Chugoku Electric Power Corporation (CEPC). BMSB fulfilled the important role of facilitator for this transaction, which would not have been feasible without the unique expertise and services offered by the financial institution. In assisting the project buyer, BMSB compiled a portfolio of more than 10 suitable small and medium-scale CDM projects and provided other assistance required under the Kyoto Protocol for the buyer.

Comments from the judges:

“Stimulating the market in the region, giving SMEs access to the market, a key demonstration effect, proving Brazil as a reliable source of CERs.”

Andre Abadie on behalf of ABN AMRO

Baba Abu, RBS

Eric Cochard, Calyon

Foster Deibert, WestLB

Luiz Antonio Neto de França, Banco Itau

Sabine Lehan, HVB

Shawn Miller, Citi

Osamu Odawara, Mizuho

Leonie Schreve, ING

Claire Wallace, Barclays

Jon Williams, HSBC