Success of the first major climate-friendly Green Bond
France successfully issued its first sovereign green bond for a total amount of 7 billion euros, making it the biggest green bond ever issued.
The French Republic has issued this week its first and emblematic sovereign green bond, for a record of 7 billion euros raised with a maturity of 22 years, thus becoming the first country in the world to issue such an important sovereign green bond, both in terms of its size and maturity.
The funds raised through this bond have the particular feature of being aimed at financing projects exclusively linked to the energetic and ecological transition.
"The success of this historic bond and the governments’ acceleration in the green bond market are a response to investors’ growing interest for responsible investments." Félix Orsini, Global Head of DCM Public Sector Origination
The projects in question focus on four areas:
- the fight against climate change,
- adaptation to climate change,
- protection of biodiversity,
- and fight against pollution.
To carry out this emblematic operation, Societe Generale was one of the joint bookrunners mandated by Agence France Trésor (AFT), the agency in charge of the French State’s bond issues. The deal attracted a highly diversified investor base, reflected by an order book of more than 23 billion euros distributed among some 200 end clients, including many SRI specialist investors. Among the subscribers of the "Green OAT 1.75% 25 June 2039" are financial institutions such as asset managers, banks, pension funds or insurers, public institutions, alternative management and even NGOs, both in France and abroad.
Factsheet: France's inaugural bond issue
AFT’s Press release: Launch of the Green OAT 1.75% 25 June 2039 (link to their website