A Green Bond is an environmental or green bond issued by a company, an international organization, a State or a local authority on the financial markets to finance a project or an activity with an environmental benefit, or to acquire a company which itself has “green” projects or activities. The green bond attracts more particularly responsible investors who seek a double financial and environmental benefit in the long term. These green bond have developed particularly since 2013 in France and around the world.

The proceeds of the bond will be used to finance renewable energy projects such as wind and solar farms, hydroelectric plants, energy efficiency projects and natural resources preservation projects.

The bond has two tranches: a 7-year tranche of €700 million with a 0.875% annual coupon, and a 11-year tranche of €800 million with a 1,5% annual coupon. The average coupon amounts to 1.20% for a 9.1 years average duration.

To be eligible, projects financed must meet a number of environmental and social criteria in eight areas: fight against climate change and the conservation of the natural resources, environmental management, biodiversity, dialogue with stakeholders, business ethics, human rights, responsible procurement and health and safety. These criteria were developed by ENGIE, reviewed by Vigeo Eiris and are published on our website.

Bond issue proceeds will be allocated according to a specific traceability procedure that will be verified by an external audit firm. In the spirit of continuous improvement and contribution to best practices, we took on the occasion of this Green Bond as an opportunity to further commit on the reporting and the transparency of the allocation process.