Who’s Financing Them?

Which banks, pension funds, insurance companies, asset managers and other financial institutions around the globe are financing the 20 major nuclear weapons companies examined in this report?

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Americas

Canada

Canada

Summary of Canadian Findings

The report shows that 10 Canadian financial institutions are substantively involved in the financing of nuclear weapons producers: the Bank of Montreal, CIBC, Gryphon International, Manulife Financial, Ontario Teachers’ Pension Plan, the Power Corporation of Canada, the Royal Bank of Canada, Scotiabank, Sun Life Financial and Toronto-Dominion Bank.

Each was found to own a significant portion of the shares and bonds of nuclear weapons producers or to have provided them with loans or participated in their share or bond issues between July 2008 and December 2011. Canadian involvement in the financing of nuclear weapons producers is greater than that of most other non-nuclear-weapon states.

Financial Institutions Identified
  • Bank of Montreal has loaned more than US$100 million to General Dynamics in recent years, and participated in one of its recent bond issues. General Dynamics manufactures US nuclear-armed submarines and ballistic missiles.
  • CIBC owns bonds worth US$350,000 in Serco Group, which has a one-third stake in the British Atomic Weapons Establishment, where the country’s nuclear warheads are designed and manufactured.
  • Gryphon International owns US$40 million worth of shares in Serco Group.
  • Manulife Financial’s subsidiary John Hancock owns bonds worth US$68 million in BAE Systems, a producer of British and French nuclear weapons); bonds worth US$103 million in Boeing, a producer of US nuclear missiles; and bonds worth US$38 million in EADS, a producer of French nuclear missiles.
  • Ontario Teachers’ Pension Plan owns US$93 million worth of shares in BAE Systems.
  • Power Corporation of Canada’s subsidiary Putnam owns US$7 million worth of bonds in Alliant Techsystems and US$214 million worth of shares in Northrop Grumman, both of which produce US nuclear missiles. PCC’s subsidiary Great West Life & Annuity Insurance owns US$28 million worth of bonds in Northrop Grumman.
  • Royal Bank of Canada has participated in bond issues of or provided loans to Alliant Techsystems, Boeing, EADS, Honeywell International (producer of US nuclear weapons components), Lockheed Martin (producer of US nuclear missiles) and Rolls-Royce (producer of British nuclear-armed submarines). RBC states on its website that there are certain types of clients and transactions it “avoids in all cases”, including “the financing of companies manufacturing or trading in equipment or material for nuclear, chemical or biological warfare, landmines or cluster bombs”.
  • Scotiabank has recently provided loans of US$28 million (estimate) to Babcock & Wilcox, a producer of US nuclear warheads; $75 million (estimate) to Bechtel, the operator of two major US nuclear weapons laboratories; US$36 million (estimate) to General Dynamics; and US$171 million (estimate) to Northrop Grumman. It has also participated in a bond issue of General Dynamics.
  • Sun Life Financial owns bonds worth US$54 million in BAE Systems, and shares worth US$1.5 billion in Honeywell International, US$1.5 billion in Lockheed Martin, US$534 million in Northrop Grumman and US$101 million in Rolls-Royce.
  • Toronto-Dominion Bank has provided loans to BAE Systems of US$132 million (estimate), EADS of US$111 million (estimate), General Dynamics of US$115 million (estimate) and Rolls-Royce of US$46 million (estimate). It has also participated in a bond issue of General Dynamics. TD Bank has a policy not to “lend money for transactions that are directly related to the trade in or manufacturing of material for nuclear, chemical or biological weapons or for landmines or cluster bombs”.
United States

United States

Nuclear Weapons Production

Most companies involved in nuclear weapons work are based in the United States. The following US companies are among this most heavily involved:

  • Alliant Techsystems, or ATK, which produces rocket propulsion systems for Trident II submarine-launched ballistic missiles and Minuteman III intercontinental ballistic missiles.
  • Babcock & Wilcox, which supplies the US government with nuclear components for its defence programmes and operates the Pantex plant of the National Nuclear Security Administration, where it modernizes nuclear warheads.
  • Bechtel, which manages the Los Alamos and Lawrence Livermore national laboratories, where nuclear weapons are researched, designed and developed, and the “safety and reliability” of the current US nuclear stockpile is monitored.
  • Boeing, which maintains the Minuteman III intercontinental ballistic missiles in the US arsenal, being responsible for guidance, flight controls, weapons systems testing and engineering.
  • GenCorp, which is involved in the design, development and production of land- and sea-based nuclear ballistic missile systems. It is currently producing propulsion systems for Minuteman III and D5 Trident nuclear missiles.
  • General Dynamics, which provides maintenance, engineering and technical support for US nuclear-armed submarines. It built the Ohio-class submarines for the US navy, many of which are equipped with Trident nuclear missiles.
  • Honeywell International, which produces approximately 85 percent of the non-nuclear components for US nuclear weapons, and is involved in simulated nuclear testing and the life-extension programme for the US navy’s Trident II nuclear missiles.
  • Jacobs Engineering, which owns a one-third share in the United Kingdom’s Atomic Weapons Establishment, where it designs, manufactures and maintains British nuclear warheads.
  • Lockheed Martin, which is involved in the production and maintenance of nuclear weapons for both the United States and Britain, being responsible for the construction of submarine-launched Trident II D5 nuclear missiles.
  • Northrop Grumman, which leads a joint project responsible for producing and maintaining the Minuteman III nuclear missiles, roughly 500 of which form the core of the US nuclear arsenal.
Nuclear Weapons Investments

The report identifies 179 US financial institutions that are substantively involved in the financing of nuclear weapons producers. They represent approximately half of all financial institutions listed in the report. The following have investments in multiple nuclear weapons companies:

  • AIG
  • Allstate Corporation
  • American Express Company
  • Bank of America
  • BlackRock
  • BNY Mellon
  • Capital Group
  • Citi
  • Dimensional Fund Advisors
  • Eaton Vance
  • Fidelity
  • Franklin Templeton
  • Gabelli Group
  • Genworth Financial
  • Geode Capital Management
  • Goldman Sachs
  • Hartford Financial Services Group
  • Jackson National Life Insurance
  • JP Morgan Chase
  • Lazard
  • Legg Mason
  • Lincoln National Corporation
  • Managed Account Advisors
  • MassMutual
  • MetLife
  • Morgan Stanley
  • New York Life
  • Northern Trust
  • Northwestern Mutual
  • Nuveen Investments
  • OppenheimerFunds
  • PNC Bancorp
  • Primecap Management Company
  • Principal Financial Group
  • Prudential Financial
  • State Farm
  • State Street
  • SunTrust
  • Symetra Financial
  • T. Rowe Price Group
  • TIAA-CREF
  • Unum Group
  • US Bancorp
  • Vanguard Group
  • Wellington Management
  • Wells Fargo
  • William Blair & Company
Venezuela

Venezuela

Investments

In July 2008 the Venezuelan financial institution Casa de Bolsa del Caribe loaned an estimated US$92.2 million to Finmeccanica, an Italian company involved in the manufacture of French nuclear missiles.

Asia Pacific

Australia

Australia

Summary of Australian Investments

The report found that five Australian financial institutions have significant bond- or shareholdings in nuclear weapons producers, or provided them loans between July 2008 and December 2011. ANZ is the most heavily involved in financing nuclear weapons producers.

  • ANZ has provided loans to eight nuclear weapons producers (Babcock International, BAE Systems, Boeing, EADS, General Dynamics, Lockheed Martin, Rolls-Royce and Thales) totalling an estimated US$854.6 million and has participated in the bond issues of three of them (Boeing, General Dynamics and Lockheed Martin), underwriting a total of approximately US$149.1 million.
  • Commonwealth Bank has loaned an estimated US$131.7 million to BAE Systems, an estimated US$111.4 million to EADS, and an estimated US$46.3 million to Rolls-Royce.
  • Macquarie Group owns shares worth US$193 million in Northrop Grumman and (through Delaware Investments) owns bonds worth US$38.2 million in Finmeccanica.
  • Platinum Investment Management owns shares worth US$150.6 million in Jacobs.
  • Westpac has loaned an estimated US$90.2 million to Boeing, an estimated US$111.4 million to EADS and US$50 million to Honeywell International.
China

China

Summary of Chinese Findings

The report found that Bank of China and ICBC have provided loans to US defence and aerospace company Boeing, which is heavily involved in the production of long-range US nuclear missiles. It maintains the Minuteman III intercontinental ballistic missiles.

In November 2010, Bank of China and ICBC each provided a loan worth an estimated US$40.7 million to Boeing. ICBC also provided a loan in April 2011 to EADS, a Dutch company involved in the production of French nuclear missiles.

The SAFE Investment Company in Hong Kong is included in the report because of its US$39-million shareholding in British company Serco, which has a one-third stake in the joint venture that runs the United Kingdom’s Atomic Weapons Establishment, where nuclear warheads are designed, manufactured and modernized.

India

India

Nuclear Weapons Production

Indian construction company Larsen & Toubro is identified in the report as one of 20 companies globally that are heavily involved in the manufacture and maintenance of nuclear weapons and their launch systems. It is responsible for designing and building the Advanced Technology Vessel, which is the future nuclear-armed submarine of the Indian navy.

The project, with a total value of US$3 billion, has the objective of building five nuclear submarines, each equipped with a dozen K-15 nuclear missiles. L&T began construction of the second submarine in 2008. The company has also been responsible for testing a launch system for India’s nuclear missiles with a range of 300 km.

Financial Institutions Identified

The report lists 13 Indian financial institutions that finance Larsen & Toubro. One bank, ICICI Bank, is also substantively involved in financing Boeing, which produces US long-range nuclear missiles. The Life Insurance Corporation of India is the largest shareholder in L&T. Its 19 per cent stake is worth US$4.36 billion. L&T is financed not only by Indian institutions, but also to a large degree by banks in the United States, Britain and Switzerland.

Japan

Japan

Summary of Japanese Investments

The report found that five Japanese financial institutions are substantively involved in the financing of nuclear weapons producers: Daiwa Securities Group, Mistubishi UFJ Financial, Mizuho Bank, Nomura and Sumitomo Mitsui Banking. The involvement of Mitsubishi UFJ Financial and Sumitomo Mitsui Banking is the greatest, followed by Mizuho Bank.

  • Daiwa Securities Group has participated in three bond issues of Boeing since March 2009, underwriting a total of US$174.4 million. It also owns shares in GenCorp worth US$5.5 million.
  • Mitsubishi UFJ Financial has, since 2008, provided loans to Alliant Techsystems (US$75 million in October 2010), Babcock & Wilcox (an estimated US$28 million in May 2010, through its US subsidiary Union Bank), Babcock International (an estimated US$81 million in June 2011), BAE Systems (an estimated US$131.7 million in December 2011), Bechtel (an estimated US$75 million in June 2011, through Union Bank), Boeing (three loans totalling an estimated US$90.2 million), EADS (an estimated US$111.4 million in April 2011), Finmeccanica (two loans totalling an estimated US$219.5 million), General Dynamics (three loans totalling an estimated US$185.5 million), Honeywell International (US$90 million in March 2011), Lockheed Martin (US$85 million in August 2011), Rolls-Royce (an estimated US$205.8 million in October 2011), Safran (two loans totalling an estimated US$319.4) and Thales (an estimated US$107.9 million in December 2010). It has also participated in the bond issues of Alliant Techsystems (US$18.4 million in September 2010), Boeing (four issues totalling US$189.4 million), EADS (an estimated US$45 million in August 2009), General Dynamics (two issues totalling an estimated US$71.3 million), Honeywell International (two issues totalling an estimated US$42 million), Lockheed Martin (an estimated US$30 million in November 2009) and Northrop Grumman (two issues totalling (US$74.1 million). The total estimated value of the loans is US$1.8 billion, while the total estimated value of the underwritten bonds is US$470 million.
  • Mizuho Bank has, since 2008, provided loans to Alliant Techsystems (US$70 million in October 2010), Bechtel (US$75 million in June 2011), Boeing (four loans totalling an estimated US$130.2 million), EADS (an estimated US$111.4 million in April 2011), General Dynamics (two loans totalling an estimated US$115.6 million), Honeywell International (US$100 million in March 2011) and Lockheed Martin (US$85 million in August 2011). It has also participated in the bond issues of Boeing (four issues totalling US$189.4 million), General Dynamics (US$52.5 million in July 2011) and Lockheed Martin (two issues totalling US$110 million). The total estimated value of the loans is US$687 million, while the total estimated value of the underwritten bonds is US$352 million.
  • Nomura participated in a share issue of Finmeccanica in November 2008, underwriting US$77.8 million, and a bond issue of Finmeccanica’s US subsidiary in November 2009, underwriting an estimated US$62.5 million.
  • Sumitomo Mitsui Banking has, since 2008, provided loans to Babcock & Wilcox (an estimated US$28 million in May 2010), BAE Systems (an estimated US$131.7 million in December 2011), Boeing (four loans totalling an estimated US$130.2 million), EADS (an estimated US$111.4 million in April 2011), Finmeccanica (an estimated US$127.3 million in July 2010), General Dynamics (two loans totalling an estimated US$115.6 million), Honeywell International (US$50 million in March 2011), Lockheed Martin (US$37.5 million in August 2011), Northrop Grumman (an estimated US$171.4 million in September 2011), Rolls-Royce (an estimated US$46.3 million in October 2011) and Thales (an estimated US$87.9 million in December 2010). It has also participated in the bond issues of Boeing (US$15 million in July 2011), General Dynamics (US$30 million in July 2011, through SMBC Nikko Securities) and Lockheed Martin (US$10 million in September 2011, through SMBC Nikko Securities). The total value of the loans is approximately US$1 billion, while the total estimated value of the underwritten bonds is US$55 million.
Singapore

Singapore

Summary of Singaporean Findings

The report shows that DBS finances five foreign companies involved in the production of US, British and French nuclear weapons. Since November 2010, it has provided loans to Boeing, EADS, Honeywell International, Lockheed Martin and Rolls‑Royce.

DBS is the main financial institution in Singapore that is identified in the report. United Overseas Bank was also found to have loaned US$30 million to US nuclear weapons producer Alliant Techsystems in October 2010.

Summary of DBS’s Investments
  • Loaned an estimated US$40.7 million to Boeing in November 2010. Boeing is involved in the production of US long-range nuclear missiles.
  • Loaned an estimated US$111.4 million to EADS in April 2011. EADS is involved in the manufacture of French nuclear missiles.
  • Loaned US$50 million to Honeywell International in March 2011. Honeywell conducts simulated nuclear tests and manufactures nuclear weapons components.
  • Loaned US$37.5 million to Lockheed Martin in August 2011. Lockheed Martin is involved in both the British and US nuclear weapons programmes.
  • Loaned an estimated US$46.3 million to the defence company RollsRoyce in October 2011. Rolls-Royce is involved in the British nuclear weapons programme.
Taiwan

Taiwan

Summary of Taiwanese Findings

The report found that the Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank and Hua Nan Financial Holdings have provided loans to US companies involved in the manufacture of nuclear arms.

In October 2011 Chang Hwa Commercial Bank and First Commercial Bank loaned US$10 million each to Alliant Techsystems (ATK), and Hua Nan Financial Holdings provided US$15 million. ATK is involved in the production of US nuclear missiles. Bank of Taiwan provided an estimated US$37.5 million to General Dynamics in July 2010. General Dynamics produces US nuclear-armed submarines.

Europe

Austria

Austria

Summary of Austrian Findings

The report found Erste Bank to be financing a Dutch company involved in the production of French nuclear weapons. In April 2011 the Austrian banking group provided an estimated €85 million to the European Aeronautics Defence and Space Company (EADS), which manufactures nuclear missiles for the French navy and air force. Erste Bank is the only Austrian institution identified in the report.

Belgium

Belgium

Summary of Belgian Findings

The report found three Belgian financial institutions to be substantively involved in the financing of companies that manufacture and modernize French and British nuclear weaponry. KBC Group, Dexia and Ackermans & van Haaren invest in nuclear arms makers, either directly or through their subsidiaries.

The private bank Brown Shipley, whose parent company is KBC Group, owned a 3.32% share in the Redhall Group at the time the research was conducted (its shareholding has subsequently dropped to 0.89%). The Redhall Group carries out mechanical and electrical engineering activities at the British Atomic Weapons Establishment, which is responsible for designing, manufacturing and maintaining British nuclear warheads.

Investment firm J. M. Finn & Co., a subsidiary of Belgian holding company Ackermans & van Haaren, also owned a 1.87% share in the Redhall Group at the time of the research, and Dexia has loaned an estimated €70 million to Italian defence and aeronautics company Finmeccanica, with the latest tranche being provided in July 2011. Finmeccanica owns a one-quarter share in MBDA, a joint venture that produces nuclear missiles for the French air force.

Denmark

Denmark

Danish Investments

In March 2011 Danske Bank loaned US$50 million to Honeywell International. Honeywell International produces approximately 85 per cent of the non-nuclear components for US nuclear weapons. It is involved in simulated nuclear testing and the life-extension programme for the US navy’s Trident II nuclear missiles.

France

France

Nuclear Weapons Production

Safran and Thales manufacture M51 nuclear missiles for French nuclear submarines. The M51 missiles feature multiple warheads, with far greater payload mass and volume than their predecessors. Safran’s subsidiary Snecma is a preferred supplier of the propulsion system for the missiles, and its subsidiary Sagem developed the navigation systems. Other companies, including the Dutch firm EADS, are also involved in the joint project worth €3 billion.

French Financial Institutions

Nine French financial institutions – AXA, BNP Paribas, Covéa Mutal Insurance Group, Crédit Agricole, Crédit Mutuel, Financière de l’Echiquier, Groupe BPCE, Oddo & Cie and Société Générale – were found to invest heavily in nuclear weapons producers.

Germany

Germany

Summary of German Findings

The report found that 11 German financial institutions invest in companies that manufacture nuclear weapons and their delivery systems for the United States, the United Kingdom and France. Deutsche Bank, Allianz, BayernLB and Commerzbank invest most heavily.

  • Allianz has major shareholdings and/or bondholdings in nine US, British and French nuclear weapons producers: Alliant Techsystems, BAE Systems, Boeing, General Dynamics, Honeywell International, Lockheed Martin, Northrop Grumman, Safran and Serco. Its biggest shareholdings are in Boeing (US$353 million) and Northrop Grumman (US$339 million), which manufacture US long-range nuclear missiles, and Lockheed Martin (US$295 million), which works on British and US nuclear weapons.
  • BayernLB has provided loans totalling an estimated US$900 million in recent years to seven nuclear weapons producers: Babcock International, BAE Systems, Boeing, EADS, Finmeccanica, Rolls‑Royce, Serco Group. These companies are engaged in various activities, including the manufacture of French nuclear missiles and production of a new fleet of British nuclear-armed submarines.
  • Commerzbank has provided loans totalling an estimated US$800 million in recent years to seven nuclear weapons producers: BAE Systems, Boeing, EADS, Finmeccanica, Rolls‑Royce, Safran and Thales. It has also participated in the recent bond issues of three of these companies.
  • DekaBank owns bonds worth US$12.8 million in Dutch company EADS and US$10.4 million in French company Thales, both of which produce French nuclear missiles.
  • Deutsche Bank owns shares or bonds in, or has recently provided loans to, the following 13 nuclear weapons producers: Alliant Techsystems, BAE Systems, Boeing, EADS, Finmeccanica, GenCorp, General Dynamics, Honeywell International, Lockheed Martin, Northrop Grumman, Rolls‑Royce, Safran and Thales. Its largest investments are in BAE Systems (US$715 million), Boeing (US$561), Honeywell International (US$548 million), Northrop Grumman (US$468 million) and Thales (US$449 million).
  • DZ Bank loaned an estimated US$111 to EADS in April 2011 and an estimated US$92 million to Finmeccanica in 2009. It also owns US$8 million worth of bonds in Thales. All three companies are involved in the production of French nuclear missiles.
  • Helaba loaned an estimated US$111 to EADS in April 2011.
  • KfW loaned an estimated US$111 to EADS in April 2011.
  • Landesbank Baden-Wurttemberg loaned an estimated US$92 million to Finmeccanica in July 2008.
  • Munich Re’s subsidiary owns US$43 million worth of bonds in BAE Systems.
  • Universal-Investment-Gesellschaft owns US$740,000 worth of shares in the Redhall Group, a frequent contractor at the British Atomic Weapons Establishment.
Ireland

Ireland

Summary of Irish Findings

The report found that in May 2010 Allied Irish Banks loaned an estimated US$28 million to the Babcock & Wilcox, which supplies nuclear components to the US government for defence programmes. It also provides various services to facilities that are part of the nuclear weapons complex of the Department of Energy, and operates the Pantex plant of the National Nuclear Security Administration in Texas, where it modernizes nuclear warheads for Trident missiles.

In a letter to ICAN dated January 31, 2012, Allied Irish Banks stated that is has a policy “to operate to the highest ethical standards in compliance with all laws, regulations and codes of the jurisdictions in which we operate”. However, it said it would not comment on its transaction with Babcock & Wilcox.

Italy

Italy

Nuclear Weapons Production

Italian defence and aeronautics company Finmeccanica holds a one-quarter share in MBDA, which builds nuclear missiles for the French air force. The missiles are capable of being launched from the Mirage 200N fighter plane and the new Rafale fighter plane.

Summary of Italian Investments

The report lists 13 Italian banks that are substantively involved in financing nuclear weapons producers: Intesa SanPaolo, Banca Leonardo, Banca Monte dei Paschi di Siena, Banca Popolare di Milano, Banca Popolare di Sondrio, Banca Popolare Emilia Romagna, Banca Populare di Vicenza, Banco Popolare, Credito Emiliano, Gruppo Carige, Intesa SanPaolo, Mediobanca, UBI Banca and Unicredit.

Most of these banks have provided loans to Finmeccanica since 2008, while some have also financed US, British, French and Dutch nuclear weapons producers. Intesa SanPaolo was found to be the most heavily involved in the financing of nuclear weapons producers.

Netherlands

The Netherlands

Nuclear Weapons Production

The Dutch company EADS (European Aeronautic Defence and Space Company) produces and maintains submarine-launched nuclear missiles for the French navy, and is part of a joint venture that is building missiles for the French air forces. It has two major shareholders: the German car marker Daimler (22.36%) and the French holding company Sogeade (22.36%). Another major shareholder is the Russian bank Vnesheconombank (US$1.27 billion).

Dutch Financial Institutions

Three Dutch financial institutions were found to be substantively involved in the financing of nuclear weapons producers:

  • AEGON, through its subsidiary Transamerica, owns bonds in Alliant Techsystems (US$5.57 million), BAE Systems (US$34.94 million), Boeing (US$128.6 million), Finmeccanica (US$50.29 million) and Honeywell International (US$94.47 million). It also owns shares, through its subsidiary Kames Capital, in Babcock International (US$53.24 million), Rolls Royce (US$207.03 million) and Serco Group (US$55.78 million).
  • ING participated in a bond issue of Boeing in March 2009, underwriting US$18.5 million, and another in July 2009, underwriting US$19.5 million. It also provided a $20 million loan to Boeing in November 2008 and another in March 2010 to the tune of US$50 million. In April 2011 is provided a loan to EADS of an estimated US$111.4 million, and in December 2010 it provided a loan to Safran estimated to be US$121.3 million. It also owns bonds in Honeywell International worth US$68.55 million.
  • Unilever Pensioenfonds Progress owns shares in Redhall Group valued at $610,000.
Norway

Norway

Summary of Norwegian Investments

The report found that the Government Pension Fund Global has significant investments in five nuclear weapons companies totalling approximately half a billion dollars: Babcock & Wilcox (US$19.57 million), Babcock International (US$33.27 million), Jacobs Engineering (US$36.5 million), Rolls-Royce (US$356.41 million) and Thales (US$54.21). In addition, it found that DnB loaned US$50 million to Honeywell International in March 2011.

Russia

Russia

Summary of Russian Investments

The report found that the Russian development bank Vnesheconombank owns a US$1.27-billion stake in the Dutch company EADS, which produces and maintains submarine-launched nuclear missiles for the French navy, and is part of a joint venture that is building nuclear missiles for the French air force.

Spain

Spain

Summary of Spanish Investments

The report found that Banco Santander and BBVA are heavily involved in the financing of companies that produce US, British and French nuclear weapons. The two Spanish banks have provided loans to or participated in bond issues of 10 foreign-owned companies that involved in the manufacture of nuclear weapons or the missiles and submarines used to launch them.

Banco Santander and BBVA are the only two Spanish banks listed in the report. Asset manager Bestiver, a subsidiary of Grupo Entrecanales, is also included due to its US$235-million stake in the French company Thales and US$38-million stake in the Italian company Finmeccanica. Both are involved in the production of French nuclear missiles.

Banco Santander’s Investments
  • Boeing: Banco Santander underwrote bonds issued by Boeing in November 2009 (US$12 million) and July 2011 (an estimated US$15 million), and provided loans in November 2009 (US$29.5 million) March 2010 (US$60 million) and November 2010 (an estimated US$40.7 million). Boeing manufactures US nuclear missiles.
  • EADS: Banco Santander loaned an estimated US$111.4 million to EADS in April 2011. EADS manufactures French nuclear missiles.
  • Finmeccanica: Banco Santander underwrote bonds issued by Finmeccanica in October 2009 (an estimated US$62.5 million), and provided loans in July 2008 (an estimated US$99.2 million) and July 2010 (an estimated US$127.3 million).
  • General Dynamics: Banesto, a subsidiary of Banco Santander, loaned US$37.5 million to General Dynamics in July 2010 and US$78.1 million in July 2011. General Dynamics builds nuclear-armed submarines for the United States.
  • Honeywell International: Sovereign Bank, a subsidiary of Banco Santander, loaned US$50 million to Honeywell International in March 2011. Honeywell produces components for US nuclear weapons and carries out simulated nuclear tests.
  • Rolls-Royce: Banco Santander loaned an estimated US$46.3 million to Rolls-Royce in October 2011. Rolls-Royce, the defence company (as distinct from the car company that is part of BMW), is involved in the UK nuclear weapons programme.
  • Safran: Banco Santander provided an estimated US$121.3 million to Safran in December 2010. Safran is involved in the production of French nuclear missiles.
  • Thales: Banco Santander underwrote bonds issued by Thales in October 2010 (an estimated US$139.2 million), and loaned the company an estimated US$107.9 million in December 2010. Thales produces French nuclear missiles.
BBVA’s Investments
  • Babcock & Wilcox: BBVA and its subsidiary Compass Bank each loaned an estimated US$28 million to Babcock & Wilcox in May 2010. Babcock & Wilcox operates the Pantex plant of the US National Nuclear Security Administration.
  • Bechtel: Compass Bank loaned Bechtel an estimated US$75 million is July 2011. Bechtel operates the Los Alamos and Lawrence Livermore nuclear weapons laboratories in the United States.
  • Boeing: BBVA has underwritten bonds issued by Boeing since July 2009 to the order of US$80.7 million, and has loaned the company an estimated US$90.2 million since November 2008.
  • EADS: BBVA underwrote bonds issued by EADS in August 2009 (an estimated US$45 million), and loaned it an estimated US$111.4 million in April 2011.
  • Finmeccanica: BBVA underwrote bonds issued by Finmeccanica in October 2009 (an estimated US$44.4 million) and a shares issued in November 2008 (US$77.9 million). It provided loans in July 2008 (an estimated US$92.2) and July 2010 (an estimated US$127.3 million).
  • General Dynamics: BBVA underwrote bonds issued by General Dynamics in June 2009 (US$52.5 million) and July 2011 (US$180 million), and provided loans to the company in July 2010 (US$80 million) and July 2011 (US$160 million).
  • Honeywell International: BBVA underwrote bonds issued by Honeywell International in February 2009 (US$21 million) and February 2011 (US$21 million), and provided a loan to the company in March 2011 (US$100 million).
  • Thales: BBVA loaned US$87.9 million to Thales in December 2010.

BBVA’s defence policy, which was last updated in 2008, states that the group will not be involved in financing operations that “include cluster bombs and any weapons of mass destruction (nuclear, chemical and/or bacteriological)”.

Sweden

Sweden

Summary of Swedish Investments

The report found that four Swedish financial institutions are substantively involved in financing nuclear weapons companies. They are: Nordea Bank, Skandinaviska Enskilda Banken, Svenska Handelsbanken and Swedbank.

  • In October 2011, Nordea Bank provided a loan of an estimated US$46.3 million to Rolls-Royce, which is part of a joint venture in the United Kingdom to develop a new class of nuclear-armed submarines. It is also involved in the maintenance of the existing fleet of Vanguard-class submarines.
  • In December 2010, Skandinaviska Enskilda Banken provided a loan of an estimated US$131.7 million to BAE Systems, which is also involved in the development of the new class of nuclear-armed submarine for the United Kingdom, and is part of a joint venture that produces nuclear missiles for the French air force. In April 2011 it provided a loan of an estimated US$111.4 million to EADS, which produces submarine-launched nuclear missiles for the French navy, and is part of the joint venture that builds nuclear missiles for the French air force.
  • In July 2010, Svenska Finans International (part of Svenska Handelsbanken) provided a loan of an estimated US$37.5 million to General Dynamics. Svenska Handelsbanken also made a loan of an estimated US$78.1 million to General Dynamics in July 2011. General Dynamics provides maintenance, engineering and technical support for US nuclear-armed submarines. It built the Ohio-class submarines for the US Navy, many of which are equipped with Trident nuclear missiles.
  • Swedbank owns shares worth US$62.7 million (at November 2011) in Jacobs Engineering. Jacobs owns a one-third share in the Atomic Weapons Establishment, which designs, manufactures and maintains the nuclear warheads for the United Kingdom’s Trident submarine-launched, intercontinental ballistic missiles. Swedbank also owns shares worth US$840,000 in the Redhall Group, which is involved in mechanical and engineering activities at the British AWE, including the assembly of nuclear warheads.
Switzerland

Switzerland

Summary of Swiss Findings

The report found that Credit Suisse and UBS are heavily involved in financing companies that produce US, British, French and Indian nuclear weapons and their launch systems. The two Swiss banks have substantial share- or bond-holdings in, or have recently loaned money to, more than a dozen nuclear weapons producers. A total of Swiss financial institutions are listed in the report.

Credit Suisse’s Investments
  • Babcock International: Credit Suisse owns shares worth US$26.4 million in Babcock International, which maintains the current fleet of UK nuclear-armed submarines and is part of a joint project to build a replacement fleet.
  • BAE Systems: Credit Suisse underwrote bonds issued by BAE Systems in October 2011 worth an estimated US$250 million and provided a loan of an estimated US$131.7 million in December 2011. BAE Systems is involved in the British and French nuclear weapons programmes.
  • Boeing: Credit Suisse has participated in five bond issues of Boeing since July 2009, underwriting an estimated US$434.7 million in total, and has provided three loans since November 2008 with a combined estimated value of US$90.2. Boeing manufactures US long-range nuclear missiles.
  • EADS: Credit Suisse loaned an estimated US$111.4 million to EADS in April 2011. EADS is involved in the production of French nuclear missiles.
  • Finmeccanica: Credit Suisse underwrote shares issued by Finmeccanica in November 2008 to the order of US$148 million and provided a loan of an estimated US$92.2 million in July 2008. Finmeccanica produces French nuclear missiles.
  • Larsen & Toubro: Credit Suisse participated in a share issue of Larsen & Toubro in July 2011, underwriting an estimated US$46.6 million. L&T manufactures Indian nuclear-armed submarines.
  • Northrop Grumman: Credit Suisse owns shares worth US$299 million in Northrop Grumman. It underwrote bonds issued by the company in July 2009 worth US$127.5 million and November 2010 worth US$150 million. Northrop Grumman produces US long-range nuclear missiles.
UBS’s Investments
  • BAE Systems: UBS owns shares worth US$250 million in BAE Systems, and loaned the company and estimated US$131.7 million in December 2011.
  • Boeing: UBS owns shares worth US$762 in Boeing, and has participated in several of its bond issues since July 2009, underwriting a total of approximately US$453.2 million. It has also provided three loans since November 2008 with a total value of approximately US$90.2 million.
  • EADS: UBS owns bonds worth US$16.5 million in EADS, and provided a loan of an estimated US$111.4 million in April 2011.
  • Finmeccanica: UBS owns US$99 million worth of shares in Finmeccanica. It participated in a bond issue in November 2008, underwriting US$225.5 million, and provided loans in July 2008 of US$92.2 million and October 2009 of US$62.5 million.
  • GenCorp: UBS owns US$21 million worth of shares in GenCorp, which manufactures Trident nuclear missiles.
  • General Dynamics: UBS owns $463 million worth of shares in General Dynamics, which manufactures US nuclear-armed submarines.
  • Honeywell International: UBS participated in bond issues of Honeywell International in February 2009 worth US$240 million and February 2011 worth US$88.2 million. Honeywell International produces nuclear weapons components and carries out simulated nuclear tests for the United States.
  • Jacobs Engineering: UBS owns US$37 million worth of shares in Jacobs Engineering, which holds a one-third stake in the United Kingdom’s Atomic Weapons Establishment.
  • Lockheed Martin: UBS has participated in three bond issues of Lockheed Martin since November 2009, underwriting a total of approximately US$401.3 million. It also provided a loan of US$55 million in August 2011. Lockheed Martin is involved in the US and British nuclear weapons programmes.
  • Northrop Grumman: UBS owns US$96 million worth of shares in Northrop Grumman.
Other Swiss Institutions’ Investments
  • Investment management firm Jabre Capital Partners owns bonds worth US$7.5 million in Alliant Techsystems, a manufacturer of US nuclear missiles.
  • Banking firm Julius Baer owns bonds worth US$7.5 million in Safran, which produces French nuclear missiles.
  • Private bank and asset manager Pictet & Cie owns shares worth US$115.4 million in Rolls-Royce, which is involved in the UK nuclear weapons programme.
  • Employers Reassurance Corporation, which is part of Swiss Reinsurance Company, owns US$49 million worth of bonds in Honeywell International and US$33 million worth of bonds in General Dynamics.
  • Asset manager and fund provider Swisscanto owns bonds worth US$6 million in Rolls-Royce and bonds worth US$7.5 million in Safran.
United Kingdom

United Kingdom

Nuclear Weapons Production

Several British companies are involved in nuclear weapons work – maintaining the existing fleet of Vanguard-class Trident nuclear-armed submarines and developing the proposed new fleet of nuclear-armed submarines.

Although a final decision has yet to be made on whether to renew Trident, considerable work is already under way. Some British companies are also involved in the French nuclear weapons programme. Major nuclear weapons companies in the United Kingdom include:

  • Babcock International, which is involved in developing the new class of nuclear-armed submarine and maintaining the country’s existing fleet of submarines.
  • BAE Systems, which is part of a joint venture that is producing nuclear missiles for the French air force, and is also involved in developing Britain’s proposed new nuclear-armed submarines.
  • Redhall Group, which carries out mechanical and electrical engineering activities at the Atomic Weapons Establishment in Aldermaston and Burghfield.
  • RollsRoyce, which is part of the joint venture to develop the new class of nuclear-armed submarine, and also maintains the existing fleet of submarines.
  • Serco Group, which owns a one-third share in the joint venture that runs the Atomic Weapons Establishment, and is responsible for designing, manufacturing and maintaining nuclear warheads.
Summary of British Investments

The report identifies 41 British financial institutions with significant investments in nuclear weapons companies. Those with the greatest investments include Aviva, Barclays, HSBC, Invesco, Lloyds Banking Group and Royal Bank of Scotland. The full list is:

  • Aberdeen Asset Management
  • Altium Capital
  • Aviva
  • BAE Systems Pension Funds Investment Management
  • Baillie Gifford & Co.
  • Barclays
  • Charles Stanley Group
  • Close Brothers Group
  • Co-operative Group
  • Collins Stewart Hawkpoint
  • Egerton Capital
  • F&C Asset Management
  • Hermes
  • HSBC
  • Ignis Asset Management
  • Invesco
  • Investec Asset Management
  • Jupiter Asset Management
  • Lansdowne Partners
  • Legal & General
  • Lewis Trust Group
  • Liontrust Asset Management
  • Lloyds Banking Group
  • Longview Partners
  • Majedie Asset Management
  • Marathon Asset Management
  • Mondrian Investment Partners
  • North Atlantic Value
  • Octopus Investments
  • Old Mutual
  • Premier Asset Management
  • Prudential
  • Royal Bank of Scotland
  • Schroder Investment Management
  • Standard Chartered
  • Standard Life
  • SVG Capital
  • The National Farmers Union Mutual Insurance Society
  • The Royal London Mutual Insurance Society
  • TT International
  • Universities Superannuation Scheme

Middle East

Bahrain

Bahrain

Summary of Bahraini Findings

The report found two Bahraini banks to be substantively involved in financing companies involved in the production of nuclear weapons. In March 2010 the Arab Banking Corporation loaned US$50 million to Boeing, which manufactures US long-range nuclear missiles, and in June 2011 the Gulf International Bank provided roughly US$75 million to Bechtel, the operator of two major US nuclear weapons laboratories.

Jordan

Jordan

Summary of Jordanian Findings

The report found that Arab Bank finances two companies involved in the production of US nuclear weapons. In June 2011 the bank provided an estimated US$75 million to Bechtel, which operates the Los Alamos and Lawrence Livermore nuclear weapons laboratories in the United States, and in March 2010 it loaned US$50 million to Boeing, a manufacturer of US long-range nuclear missiles. Arab Bank is the only Jordanian financial institution identified in the report.

Kuwait

Kuwait

Summary of Kuwaiti Findings

The report found the Kuwait Investment Authority and National Bank of Kuwait to be involved in the financing of nuclear weapons producers. The government-owned KIA has shares worth US$30 million in Babcock International, a British company that maintains and modernizes the United Kingdom’s nuclear forces, while NBK provided a loan of approximately US$75 million in June 2011 to Bechtel, the operator of the Los Alamos and Lawrence Livermore nuclear weapons laboratories in the United States.

Libya

Libya

Summary of Libyan Findings

The report found that the Libyan Investment Authority holds shares worth US$116 million in Italian defence and aerospace company Finmeccanica, which manufactures nuclear missiles for the French government. The Libyan Investment Authority is the only Libyan financial institution identified in the report.

Saudi Arabia

Saudi Arabia

Summary of Saudi Findings

The report found Riyad Bank to be financing French and US companies involved in the production of nuclear weapons. Within the past two years, the bank has provided US$75 million to Bechtel, US$141 million to Boeing, US$36 million to General Dynamics, US$38 million to Lockheed Martin and US$89 million to Thales.

Bechtel operates two major nuclear weapons laboratories in the United States, where nuclear warheads are designed and produced. Boeing and Lockheed Martin are involved in the manufacture of long-range nuclear missiles, and General Dynamics builds nuclear-armed submarines. Thales, a French company, produces nuclear missiles from French submarines.

United Arab Emirates

United Arab Emirates

Summary of UAE Findings

The report found that the Abu Dhabi Commercial Bank and the National Bank of Abu Dhabi are involved in the financing of US nuclear arms producers. In June 2011 ADCB provided an estimated US$75 million to Bechtel, which operates two major US nuclear weapons laboratories, while NBAD has loaned an estimated US$390 million to Boeing and US$150 million to General Dynamics.

Bechtel operates the Los Alamos and Lawrence Livermore nuclear weapons laboratories in the United States, where nuclear warheads are designed and produced. Boeing is involved in the manufacture of Minuteman III intercontinental ballistic missiles, while General Dynamics builds nuclear-armed submarines.