Harmful investments by BNP Paribas June 2009
Loans
In June 2007, BNP Paribas won the first tender for financing Belene NPP, comprising of a € 250 million five year loan to the National Electric Company (NEK) to finance the Belene project. In June 2008, BNP Paribas was announced as the leading structuring bank which will organize the financial structuring of the main phase of the implementation of the Belene NPP project. BNP Paribas has, however, stressed it will not be involved in further financing itself. The Belene NPP is a Bulgarian nuclear power plant project located in a protected nature reserve with a record of seismic activity. In July 2005, BNP Paribas participated for a sum of € 85 million in a € 3 billion revolving credit to EADS. EADS, the second largest European arms producer, is involved in the production of nuclear weapons. In March 2007, BNP Paribas participated for an amount of € 34 million in a € 1.1 billion revolving credit, and for an amount of € 227 million in a € 7.5 billion loan to Freeport McMoran. Freeport McMoran releases 230,000 tonnes of polluted rubble into the local river system each day. Opponents of the mine are treated harshly by the military forces bribed by the company. The HidroAysén hydropower project is a joint venture between the Chilean companies Colbún and Endesa Chile. In May 2006, BNP Paribas participated in a US$ 320 million five-year loan to Colbún. In December 2006, BNP Paribas participated for a sum of € 38 million in a € 152 million revolving credit to Endesa Chile. The proceeds are to be used for general company purposes. In August 2008, BNP Paribas participated for a sum of € 22 million in a five-year loan of € 267 million to Colbún. At the end of 2008, Endesa Chile had a longterm debt of € 15 million outstanding with BNP Paribas. The HydroAysén project plans to construct 5 hydroelectric centers with dams which will displace families, threaten critically endangered species and disrupt sustainable income to Patagonia’s local communities. In December 2007, BNP Paribas arranged a € 687 million loan facility to Lundin Petroleum, and participated in the loan for an amount of € 128 million. Lundin is classified by the Sudan Divestment Task Force (SDTF) as “Highest Offender”, for its direct support to the Sudanese government. The Sudanese government is accused of continued ethnic cleansing in Darfur.
In June 2008, BNP Paribas participated for a sum of € 82 million in a € 3.4 billion project finance facility to Sakhalin Energy Investment company, to finance Phase 2 of the Sakhalin II Project. The Sakhalin II project damaged salmon spawning rivers with its 800 kms of onshore pipelines and threatens the last 120 critically endangered Western Gray Whales in the world with extinction. In June 2006, BNP Paribas participated for an amount of € 142 million in a € 1.42 five-year revolving credit to Suncor Energy. In March 2008, Suncor Energy replaced this credit by a new € 2.26 five-year revolving credit, in which BNP participated for a sum of € 256 million. Suncor Energy is one of the largest companies in the Canadian tar sands industry. Oil extracted from tar sands has a disastrous impact on the environment. In March 2005, BNP Paribas participated for a sum of US$ 60 million in a US$ 1.25 billion five year revolving credit to Textron. In April 2006 and April 2007, the revolving credit was amended. BNP Paribas participated for US$ 60 million in both amended credits. In April 2006, BNP Paribas participated for a sum of US$ 90 million in a US$ 1.75 billion credit to Textron Financial Corporation, a wholly owned subsidiary of Textron Inc. In April 2007, BNP Paribas participated for an amount of US$ 90 million in amending this credit. Textron produces cluster munitions. In August 2007, BNP Paribas participated in a € 815 million bridge loan to Vedanta Resources for an amount of € 56 million. The Indian mining company Vedanta has illegally driven indigenous people from their land in India. The company has dumped toxic waste in India and Zambia.
Issuing of shares / Issuing of bonds BNP Paribas is selected as a dealer for the Billet de Trésorerie. This € 2 billion French domestic commercial paper program enables EADS to to issue shortterm bonds with a tenor of maximum 1 year on the French capital market on a regular basis and without too many regulatory requirements. In March 2007, Freeport McMoran issued notes for an amount of € 4.5 billion. BNP Paribas participated in this issuing for € 49 million. In June 2007 and June 2008, Suncor Energy issued bonds for a total amount of € 557.2 million and € 1.3 billion respectively. BNP Paribas managed these issues and underwrote them for € 111.4 million and € 205.9 million respectively. In September 2007, BNP Paribas underwrote another issue of bonds worth € 286.4 million, for a sum of € 27.2 million.
In November 2007, Textron issued bonds for an amount of US$ 350 million, BNP Paribas underwrote this issue for a sum of US$ 12.32 million. In June 2008, BNP Paribas acted as a lead manager for the issuing of bonds of Total Capital (financing subsidiary of Total) worth € 149 million. BNP Paribas participated for a sum of € 75 million. In January 2009 and April 2009, BNP Paribas underwrote issues of bonds of Total for a sum of € 117 million and € 66 million respectively. Total is involved in gas extraction which supports the Burmese junta. The laying of the pipeline and the surrounding infrastructure led to serious human rights abuses. Between April 2008 and March 2009, BNP Paribas underwrote the issuing of bonds of Wal-Mart for € 36.1 million, € 7.7 million and € 10.1 million respectively. The US supermarket chain Wal-Mart censors trade union information, sacks members of trade unions, and even closes entire stores to block the unionisation of the workforce. Shareholdings BNP Paribas owns or manages shares in eleven of the researched companies, for a total value of US$ 705,61 million.
Colbún
US$
0,25 million
EADS
US$
10,42 million
Endesa Chile
US$
1,70 million
Freeport McMoRan
US$
17,32 million
Lundin Petroluem
US$
3,46 million
Petrochina
US$
48,27 million
Suncor Energy
US$
142,47 million
Textron
US$
0,46 million
Total S.A.
US$
259,93 million
Vedanta Resources
US$
7,71 million
Wal-Mart Stores
US$
213,62 million
Sources: European banks financing controversial companies, Profundo (research paper for Netwerk Vlaanderen), June 2009 ; Shareholdings of some European Banks in controversial companies, Profundo (research paper for Netwerk Vlaanderen), June 2009.