MUFG Launches Green Deposits for EU Corporate Clients

MUFG Bank has launched its Green Deposits offering in the European Union, allowing corporate clients to place term deposits that are used to finance assets aligned with the bank’s Green Deposit Framework. The product expands an offering MUFG first introduced in the US in 2021 and later in the UK in 2023.

 

The framework was developed with support from Morningstar Sustainalytics and covers a broad range of eligible activities, including renewable energy, energy efficiency, clean transportation, biodiversity, sustainable land use, water and wastewater management, green buildings, circular economy technologies and climate adaptation.

 

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The structure gives companies a way to link part of their cash management activity with environmental financing without moving into a separate investment product. MUFG is positioning the offering as a way for corporate treasury teams to combine liquidity management with sustainability objectives through deposits that are allocated against eligible green assets.

 

Subaru Europe has become the first client to use the EU Green Deposits product. The launch gives MUFG another route to expand sustainable finance services across the region as European companies continue to look for ways to connect day-to-day financial activity with broader environmental commitments.

 

Mamoru Shibata, Head of Transaction Banking EU/EEA at MUFG Bank (Europe) N.V., said the bank sees value in extending the product to the EU as sustainability remains an important priority for businesses. Keigo Ino, Vice President of Subaru Europe, said the company was pleased to join the initiative as its first participant in the region.