DNB follows ING in selling pipeline loan
USA
OSLO, March 27, 2017 – Norwegian Bank DNB will be withdrawing from the Dakota Access Pipeline project financing effort, the firm said on Sunday.
In a press release, DNB said the process of ending its involvement was first initiated in November with the sale mutual fund investments in entities working on the project. The bank has now also reached an agreement on the sale of its share in the loan for the Dakota Access Pipeline.
DNB follows in the footsteps of Dutch banking group ING, which last week became first bank to withdraw its financing for the project.
The decision to offload its debt followed negotiations with the Standing Rock Sioux Tribe in February, which led ING to abandon its USD 120-million share from the Citibank-led USD 2.5-billion lending effort, backed by 17 banks.
DNB’s decision, too, followed consultations with the the Standing Rock Sioux Tribe, as well as the contractor.
During the evaluation of its involvement in the pipeline’s project financing, the bank said it had exerted efforts to “call for a lower level of conflict.” It added that it had also initiated “an independent investigation of how indigenous people’s rights are being safeguarded.”
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