PRESS RELEASE: Microfinance Player Triodos Issues €90m in Bank Shares

Source: Triodos Bank.

Original press release available online.

ZEIST, the Netherlands, September 30 – Today Triodos Bank launches a capital raising issue, driven by strong growth across the bank’s activities. Over the next three to four years, Triodos Bank expects to double its balance sheet total, customer numbers and lending to sustainable companies.

The financial crisis has led to unprecedented interest in Triodos Bank’s sustainable approach to banking. The capital raising will help support the growth of the Bank’s sustainable loan portfolio, with an extra EUR 90 million needed to meet growing demand for Triodos Bank finance. The capital raising will take place in The Netherlands, Belgium, United Kingdom, Spain and Germany, and is set to run until 17 November 2009.

Triodos Bank’s CEO Peter Blom says: “New capital will enable us to lend to even more to sustainable projects and companies. Our growth is faster than foreseen; we continue to thrive despite the financial crisis, and have no shortfall of capital. This year we have grown faster than ever before, with more than an 18% increase in our customer numbers since January 2009.”

Peter Blom: “If nothing else, the financial crisis has taught us that it pays to choose sustainable.”

Triodos Bank has had a genuine commitment to sustainable banking since its establishment in 1980. The bank’s unique approach has resulted in a continuous growth, of 20% annually for the last ten years. The financial crisis has led to more widespread interest in sustainable banking than ever before. Many banks have been forced to ask their shareholders and governments for money to make up for their losses of the past. Triodos Bank is in a different position, seeking investment because of its recent growth. We want to reinforce our capital base so we can lend even more to sustainable projects and companies. The bank’s loan portfolio concentrates on sustainable sectors in which it developed significant experience and expertise. Blom: “We are convinced that sectors such as organic agriculture and solar and wind energy can realise enormous growth.”

Triodos’ rapid growth has led to frequent capital raising by the bank. The latest was in 2007 and a total of EUR 67 million was raised, an increase to the bank’s capital base of 50%.

The Bank now has over 12,000 Depository Receipts holders. Private investors hold half the capital, with the other 50% held by institutions like pension funds and financial institutions.

The Depository Receipts are not listed on a stock exchange. Instead, Triodos Bank maintains a secondary market for Depository Receipts. At its foundation, the Bank made a conscious choice to use this structure order to guarantee Triodos’ independence, values and mission.

Growth
During the first six months of 2009, Triodos Bank’s balance sheet total rose by more than 13% to EUR 2.7 billion, at 30 June 2009. Growth during the same period last year was 8%. The amount of funds entrusted, mainly comprising savings and notice deposits, increased by almost 15% during the first six months of 2009. The Bank’s loan portfolio grew by more than 12% during the first six months of 2009.

Triodos Bank’s operating profit rose by 50% compared to the same period in 2008. Net earnings for the first half of 2009 were EUR 5.7 million compared to EUR 3.7 million for the first six months of 2008. Funds entrusted for the Triodos investment funds rose by 6% in the first six months of 2009 compared to a 2% decrease in the same period of 2008.

Global Alliance for Banking on Values
Triodos Bank is in March 2009 co-founder of the Global Alliance for Banking on Values, a network of eleven sustainable and successful banks. United in the in the Global Alliance these banks want to contribute to sustainable development. That the bank model is successful is shown by the solid growth of all the banks despite the financial crises. The eleven banks are: Shore Bank (US), BRAC Bank (Bangladesh), GLS Bank (Germany), Merkur Bank (Denmark), Mibanco (Peru), Banca Popolare Etica (Italy), Banex (Nicaragua), ABS (Switzerland), NewResource Bank (US), Xac-Bank (Mongolia), and Triodos Bank (The Netherlands, Belgium, United Kingdom, Spain and Germany)

Sustainable Bank of the Year
On 4 July 2009 Triodos Bank was voted to be the most sustainable bank of the year. This prize was awarded because of the leadership and the innovation that Triodos Bank has shown for the past 30 years in integrating sustainability in all its activities. An international jury, appointed by the Financial Times and the IFC – a member of the World Bank – votes for the winners at the FT Sustainability Awards.

Sustainable Banking
Triodos Bank is an independent bank that promotes sustainable and transparent banking. The Bank, which was founded in 1980, does not see any conflict between a focus on people and the earth and a good financial return. Instead it is convinced that they will reinforce each other in the long-term.

Triodos Bank was involved from the very beginning in fiscal promotion schemes for green, social-ethical and cultural projects in The Netherlands. Triodos Bank launched the first green fund and culture fund in The Netherlands and is a global authority in the field of microfinance in development countries, Central Asia and Eastern Europe.

Through its activities Triodos Bank wants to boost the market for sustainable banking. Triodos Bank now has 225,000 individual customers and invests in over 9,500 projects. The Bank has branches in The Netherlands, Belgium, UK and Spain and a representative office in Germany.

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