Success of the first major climate-friendly Green Bond
The French Republic has issued on 24 January 2017 its first and emblematic sovereign green bond, for a record raise of 7 billion euros with a maturity of 22 years, thus becoming the first country in the world to issue a sovereign green benchmark bond, both in terms of its size and maturity.
The success of this historic bond as well as 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 funds raised through this bond have the particular feature of being aimed to financing projects exclusively linked to the energetic and ecological transition through four areas: 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, in France and abroad.