First ESG structured product launches

Mariana unveils product linked to green bonds

Financial solutions provider Mariana has created an ESG structured product linked to green bonds.

The group said it is the first of its kind on the UK market available to advisers as there had previously been difficulties for structured product providers to link to debt instruments that were not compromised in terms of their ESG credentials. For example, a number of banks including HSBC and Barclays have been criticised for the amount of loans and investment they provider to fossil fuel companies.

The Mariana ESG Green Bond UK Kick Out Plan has got around this by linking to a green bond from Credit Agricole CIB, while also ensuring the option components are ESG compliant.

The Credit Agricole CIB green note backs companies that have environmental benefits, such as mitigating climate change, preventing pollution and preserving biodiversity, and they should also have clear objectives – for example in terms of their greenhouse gas emissions reductions, energy saving. They typically sit in six key green sectors; renewable energy, green buildings, energy efficiency, clean transportation, waste and water management, sustainable agriculture and forest management.

Mariana’s Steven Graham (pictured), partner at the firm, said the underlying index for the ESG structured product is the MSCI UK Sustainable Select 50 3.5% Decrement Index, which provides exposure to companies with an MSCI ESG rating of AAA, AA or A.

The Mariana ESG Green Bond UK Kick Out Plan is targeting a potential return of 7% on capital for each year the plan runs.

Graham said: “Given the increasing demand for ESG and ethical investments, we are delighted to launch our latest plan with performance linked to a UK ESG index from a well-regarded provider. Offering the benefits of a structured product wrapper, such as defined levels of risk and return, combined with an underlying green bond, our plan presents ESG investors with a unique opportunity.”

Minimum investment is £10,000. Charges are not expected to exceed 2%. There is no ongoing charge or AMC.


Natalie Kenway

Natalie is editor in chief at MA Financial covering ESG Clarity, Portfolio Adviser and International Adviser. She was previously global head of ESG insight for ESG Clarity and has been an investment journalist...