Harmful investments by Société Générale June 2009
Loans In July 2005, Société Générale participated in a € 3 billion revolving credit to EADS, for a sum of € 120 million. EADS, the second largest European arms producer, is involved in the production of nuclear weapons. In July 2006, Société Générale participated for an amount of € 20 million in a € 336.1 million revolving credit to Freeport McMoran and PT Freeport Indonesia, its operating unit in Indonesia. Freeport 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. In March 2007, Société Générale participated for € 34 million in a € 1.1 billion revolving credit and for € 227 million in a € 7.5 billion loan to Freeport McMoran. In August 2007, Bank Austria, which is part of Société Générale, signed contracts to provide part of the € 1.2 billion debt financing for the Ilisu project. The Ilisu dam will cause the displacement of more than 55.000 Kurdish people. Moreover, huge environmental damages will be caused to the unique flora and fauna of the region. In December 2007, Société Générale participated for an amount of € 23 million in a € 687 million loan to Lundin Petroleum. 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 April 2007, Société Générale arranged a € 1.47 billion loan facility to Gazprom, to partly fund it’s acquisition of a 50%-plus-1 stake in 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, Société Générale participated in a € 1.42 billion revolving credit to Suncor Energy, for an amount of € 86 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, Société Générale participated for a sum of US$ 40 million in a US$ 1.25 billion five year revolving credit to Textron. In April 2006 and April 2007, the revolving credit was amended. Société Générale participated for US$ 40 million in both amended credits. In April 2006, Société Générale participated for a sum of US$ 45 million in a US$ 1.75 billion credit to Textron Financial Corporation, a wholly owned subsidiary of Textron Inc. In April 2007,
Société Générale participated for an amount of US$ 45 million in amending this credit. Textron produces cluster munitions. In August 2007, Société Générale, participated in € 815 million loan to Vedanta Resources for the sum 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 In September 2005, EADS launched a € 3 billion Euro Medium Term Note (EMTN) Programme, replacing the € 3 billion EMTN from February 2003. The programme enables the company to issue bonds on the European capital market on a regular basis and without too many regulatory requirements. Société Générale is one of the selected dealers for this programme. Société Générale is selected as a dealer for the Billet de Trésorerie. This € 2 billion French domestic commercial paper program enables EADS to to issue short-term 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 a total amount of € 4.5 billion. Société Générale underwrote these issues for a sum of € 49 million. The proceedings were used to partly finance the acquisition of the USA copper producer Phelps Dodge In June 2007 and in September 2007, Suncor Energy issued two series of bonds, worth € 557.2 million and € 286.4 million respectively. Société Générale underwrote these issues for €30.6 million and € 12.9 million respectively. In June 2008 and January 2009, Société Générale arranged the issuing of bonds for Total Capital (the financing subsidiary of Total), worth € 48 million and € 750 million respectively. Société underwrote these issues for € 24 million and € 375 million. 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.
Shareholdings
Société Générale owns or manages shares in ten of the researched companies, for a total value of US$ 920,84 million.
Dongfeng
US$
1,05 million
EADS
US$
20,48 million
Freeport McMoRan
US$
9,45 million
Lundin Petroleum
US$
0,10 million
Petrochina
US$
11,24 million
Suncor Energy
US$
9,89 million
Textron
US$
1,59 million
Total S.A.
US$
814,15 million
Vedanta Resources
US$
9,29 million
Wal-Mart Stores
US$
43,60 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.