Nagelmackers has become the first Belgian distributor to offer investors the possibility to contribute to the financing of activities that have a positive impact on the economy, society or the environment by investing in a structured note.

Every subscription to the Societe Generale Silver Age Thematic Note contributes to the Positive Impact Finance programme, an initiative of the United Nations which includes SG. The French bank commits to maintain financial assets (loans) with a positive impact in its balance sheet for an amount that corresponds to all subscriptions in the note for the duration of the product.

"The full nominal value invested in the Silver Age Thematic Note will be used by Societe Generale for the financing of sustainable (ESG) projects," said Gianni Pauwels (pictured), product specialist life & structured products at Nagelmackers. "An example of such project is the metro in Milan, which reduces the carbon footprint because fewer cars are used, or a hydropower station, or the financing of university buildings. It is a broader concept than a green bond, because it can also be invested in, for example, education, healthcare and well-being.

"It is interesting for our clients, because they know their money is used for a good cause without having to lose out to lesser terms and conditions of the product because Societe Generale has released the same conditions in a limited portfolio as regular funding," said Pauwels.

Vigeo Eiris, a provider of ESG research and services, not just to investors but also to private, public and non-profit organisations, has been appointed by SG as external auditor. "[Vigeo] makes an independent judgment about the sustainability of the projects of the financial assets with positive impact linked to the Silver Age Thematic Note, according to their method for assessing ESG factors," said Pauwels.

ESG investing is becoming increasingly important to Nagelmackers and its clients, according to Pauwels. "We see that there is more and more interest among customers," said Pauwels. "In our fund selection too, we find many fund managers who incorporate ESG in their investment philosophy."

The potential return of the note is not linked to sustainable investing, but instead targets the ageing population through the Solactive Silver Age Index. "This way investors can bet on two horses," said Pauwels. "On the one hand, you have the nominal amount of the note which is used for ESG projects via the positive impact finance programme, and, on the other hand, the motor of the product - the additional return - is linked to the ageing population in Europe."

Nagelmackers has distributed six structured products - each linked to a single proprietary index - worth a combined €25m this year, either in collaboration with SG or with Codeis Securities, the French bank's special purpose vehicle, according to SRP data. Last year, Belgium's oldest bank collected €17.7m from four structures and, according to Pauwels, it hopes "to continue the positive evolution when it comes to structured products next year".