Green & sustainable Deals

The new Eureden Group issued a Sustainability-linked Euro PP

On December, 7th 2020, the Brittany-based cooperative specialized in agriculture, food and agri-retail successfully issued with a group of top tier investors, a €46m 3-tranches Sustainability-Linked Euro PP with 5, 7 & 8-years tenors.

The coupon step-up/step-down mechanism is based on 3 KPIs aligned with the ESG objectives of the Group:

  • The health and safety of employees
  • The development of alternatives to phytosanitary products
  • The development of renewable energies

Natixis acted as joint Bookrunner and Documentation Agent on this Euro PP transaction.

Previously, on September 2020, Eureden first concluded its €547m inaugural Sustainability-Linked syndicated facility with 15 banks, composed of term loans and a RCF, all with a maturity of 5 years. Natixis acted as Active Bookrunner on the syndicated facilities

The signature of these two facilities will enable the Group to refinance its existing debt, finance its working capital and general corporate needs and support its development through investments and external growth operations.

Albioma’s successful inaugural Sustainability-Linked Euro PP

On 30th of November 2020 Albioma successfully priced for the second time since May 2014 a dual tranche 7 yr & 8 yr Euro PP for €100 m. Thanks to oversubscription and stronger credit quality since 2014 this new Euro PP is larger, longer and cheaper.

Albioma’s Sustainability-Linked Financing Framework has been tied to one Key Performance Indicator (KPI) and its associated Sustainability Performance Targets (SPTs). The KPI chosen is the Energy Mix indicator measuring the share of Renewable Energy volumes in (GWh) in the Energy Production Mix for any given year. The Sustainability Performance Targets are a 80% share of Renewable Energy in the Energy Production Mix by 2023 and 90% by 2025. 

Depending on whether the targets are met, a margin adjustment mechanism (bonus/malus) that may reach up to 25 base points will produce a variation in the interest rate applying to the bonds.

The Sustainability-Linked format chosen by Albioma and its strong results allowed to attract high quality investors.

Natixis as Arranger and Sustainability Structuring Advisor for this transaction.

Link to the Framework

Link to the Second Party Opinion (Vigeo Eiris)

The Fibre 44 Project Company led by the Consortium comprised of Axione, Vauban and Banque des Territoires (CDC) just qualified its project financing as a “Sustainable Loan” last December 22nd.    

The project aims at building and operating a Very high-speed broadband network in the Loire Atlantique Département.

Vigeo Eiris was appointed as the Second Party Opinion Provider and confirmed the framework was aligned with the Green Loan Principles and the Social Bond Principles making it the “First Sustainable Loan” in France.

Natixis acted as joint Bookrunner and sole Sustainability Advisor on this transaction.

BPCE issues €100 million of transition bonds, invested by AXA IM, to finance Natixis’ assets contributing to the energy transition

On December 9th, 2020, AXA Investment Managers, on behalf of AXA Group, invested in a €100 million of senior non-preferred transition bond issued by BPCE (10-year maturity with a coupon of 0.55%).

The proceeds will be used to refinance Natixis’ assets contributing to energy transition, consisting of project and/or corporate loans from relevant sectors, i.e. high emissions reduction potential as well as their contribution to a low carbon economy (such as transport, power, midstream gas, mining and metals).

The transition bonds have two key innovative features. The selected portfolio includes:

  • “Sustainability-linked” corporate loans integrating a credit margin adjustment linked to the achievement of KPIs related to the climate and the energy transition.
  • Project loans selected based on Natixis’ in-house Green Weighting Factor methodology, an innovative mechanism that links Natixis’ analytical capital allocation to the degree of climate and environmental performance of each financing, enabling it to actively manage and steer its balance sheet’s climate impact and transition strategy.

More information: https://pressroom-en.natixis.com/news/bpce-issues-eur100-million-of-transition-bonds-invested-by-axa-im-to-finance-natixis-assets-contributing-to-the-energy-transition-62e7-8e037.html

The Pierre Fabre group has renegotiated its revolving credit facility by linking it to CSR criteria

Pierre Fabre's renegotiated revolving credit facility now includes a bonus-penalty system that links the cost of the credit facility to two CSR criteria driven by “Green Mission Pierre Fabre”:  

  • the reduction of the Group’s carbon footprint (a 30% reduction of emissions by 2025 versus 2015);
  • the implementation of an innovative social- and eco-designed product initiative (100% of new product developments as from 2019, 50% of the entire product portfolio by 2023, excluding pharmaceutical specialties). 

Natixis acted as a mandated lead arranger in the transaction.

Link to the Press Release: https://www.pierre-fabre.com/en/press_release/pierre-fabre-successfully-renegotiates-its-revolving-credit-facility-by-linking-it-to

Buyout of Kersia by IK Investment: First LBO financing in France that includes sustainability-Linked features

The acquisition of Kersia by IK Investment has been financed through a Sustainability-linked syndicated leverage loan structure including RCF & term loan B tranches, in line with the LMA’s Sustainability-linked loan Principles.

Natixis was pleased to act as Sole Sustainability coordinator for this transaction.

See our Market Watch Section for more information 

Société Française de Financement Local has successfully issued its Inaugural Green Bond

On November 13th, 2020, SFIL, the 100% publicly owned leading French Agency supporting Local Investment and Export, successfully priced an inaugural €500m 8-year Green Bond.

After three successful Thematic-Bond issuances from SFIL’s subsidiary CAFFIL in 2019 and 2020 under a covered bond format (2 Social and 1 Green), SFIL is expanding its ESG issuance footprint with a first Thematic-Bond issuance from SFIL in the SSA market.

This Green Bond offering is done out of the same overarching framework, on which both CAFFIL and SFIL are possible issuers.

Natixis acted as a Joint Bookrunner in this transaction and as Green Structuring Advisor for SFIL CAFFIL Green bond framework.

Link to the Framework

Link to the SPO

Schneider Electric launched the first ever Sustainability-linked convertible bond

On November 24th, 2020, Schneider Electric, the French multinational providing energy and digital solutions for efficiency and sustainability, issued the first ever sustainability-linked convertible bond for a nominal amount of approximately €650 million. The zero-coupon bonds are convertible into new or existing shares and are due in 2026.
For this transaction, Schneider Electric has defined three KPIs with associated sustainability performance targets and methodologies, which will be tracked, reported and externally verified:

  1. Deliver 800 megatons of saved and avoided CO2 emissions for customers by 2025
  2. Increase gender diversity: 50% women hiring, 40% women among front-line managers, 30% women in leadership teams by 2025
  3. Train 1 million underprivileged people in energy management by 2025

Link to the Framework

Link to the SPO

NRG Energy issued the first ever SLB from North America

On November 18th, 2020, NRG Energy successfully priced a bridge takeout financing with a $900mm 7NCL Senior Secured Sustainability-Linked Notes.

The Sustainability-Linked Bond represents a great milestone for NRG, and for the broader sustainability themed financing market, as it represents many firsts including:

  1. 1st ever SLB from a North American issuer;
  2. 1st ever SLB from a Power Company outside of Europe; and
  3. 1st ever SLB with a “most ambitious target” clause – ensuring any future issuance must be of equal or greater climate ambition.

The SLB tranche was a huge success, and the client has also committed to appointing Natixis as an Active Bookrunner in its 2021 bond issuance in recognition of the work achieved.

Natixis acted as Joint Bookrunner and Sole Sustainability Structurer & Coordinator (Senior Secured Notes due 2027) and as Senior Co-Manager (Senior Secured Notes due 2025) in support of NRG’s $3.63 billion acquisition of Direct Energy.

This transaction is one of the year’s largest acquisitions in the U.S. energy space to be structured and executed in 2020, and its very strong reception in the market reflects the tremendous depth and liquidity of both the investment grade and high yield markets.

Link to the Framework

Link to the SPO

Engie’s new Green Hybrid Bond breaking records

On November 19th, 2020, Engie, the global reference in low-carbon energy and services, successfully priced a new €850m PerpNC8 Green Hybrid.

Returning to the EUR primary market after its triple senior tranches in March 2020 & its single senior tranche in June 2020, Engie issued a new PerpNC8 bond in parallel to a tender offer on three hybrid bonds, one of them being a Green bond - the first time a Green hybrid bond is tendered.

Earlier in the year, Natixis acted as Green Structuring Advisor assisting ENGIE in the global update of its Green Financing Framework to align it with the Group’s ambition to become the world leader in the carbon neutrality transition for corporates and local authorities and best market practices.

The Use of Proceeds of the new €850m PerpNC8 Green Hybrid will be allocated to Eligible Project Categories outlined in the framework: Renewable energy production, Energy storage, Transmission and distribution infrastructure, Energy efficiency, Carbon dioxide capture, transportation, storage and Carbone capture and reuse, Green buildings, Clean transportation, Environmentally sustainable management of living natural resources and land use.

With this new issue, Engie issued €2.35bn of Green bonds in 2020 and thus comforted its status as uncontested largest corporate green bond issuer (€12bn since their first Green Bond in 2014).

Natixis acted as Active Bookrunner in the transaction.

86% of allocations were made towards investors considered as sustainable by Natixis.

Link to the Framework

Link to the Second Party Opinion (Vigeo Eiris)

Colonial signs €1 billion Sustainability-Linked Loan

On November 5th, 2020, Spanish Real Estate company Inmobiliaria Colonial has signed a €1bn SLL through a revolving syndicated credit facility.

The new loan is structured in two tranches of €500 million each and will provide the company with liquidity for its business over the next five years, with the possibility of extending it for a further two years. It replaces two credit lines that totaled €850m.

The banking pool is made up of various national and international financial institutions, including CaixaBank acting as the agent bank, and BBVA, BNP and Natixis, as well as CaixaBank again, acting as sustainability agents.

Michelin bags €2.5bn Sustainability-Linked Loan

Michelin, the French tyre maker, has signed a 2.5bn multi-currency Sustainability-linked Revolving Credit Facility.

The Facility has a tenor of 3 years and includes two 1-year extension options, exercisable at the end of year 1 and 2, at each lender’s sole discretion. The proceeds from the Facility will be used for general corporate purposes including the refinancing of the Company’s existing EUR 1,500,000,000 facility dated 12 July 2011 as amended on 20 July 2012 and 10 December 2014.

The CSR clause links pricing to a set of sustainability performance targets including reducing greenhouse gas emissions and reduction of the environmental impact of its sites.

Natixis acted as a mandated lead arranger in the transaction.

Airbus signed a Sustainability-Linked credit facility

On October 21st, 2020, the French aerospace company signed a €6bn sustainability-linked revolving credit facility.

The borrower’s new facility has a three-year maturity and was provided by more than 30 banks among which Natixis was designated as a lead arranger in the transaction.

Airbus’s financing was used to term out €3bn of the €15bn liquidity facility put in place in March to bolster the company’s liquidity in the wake of the Covid-19 crisis, and to refinance the company’s existing €3bn RCF, which was due to mature in October 2021.

One of the KPI is Airbus’ performance as measured by the CDP Climate Change score. CDP is a not-for-profit charity that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.

Agence Française de Développement has successfully launched its Inaugural SDG Bond

On October 22nd 2020, Agence Française de Développement (AFD) successfully priced an inaugural €2 billion 7-year Sustainable bond.

The EUR 2 billion transaction was significantly oversubscribed with a final order book reaching over EUR 5 billion.

AFD issued this SDG Bond under its newly published SDG Bond Framework.

Natixis acted as a Sole Structurer on the structuration of the framework and as a Joint Bookrunner.

This Framework was designed in relation with UN Sustainable Development Goals (SDGs), which are at the heart of AFD Group’s strategy and are fully incorporated into loans identification and selection processes.

Link SDG Bond Framework

Link to the Second Party Opinion (Vigeo Eiris)

New success for CADES with its €5 billion Social Bond

On 29th September 2020, la Caisse d’Amortissement de la Dette Sociale (CADES) issued a new EUR 5bn long 7-year Social Bond. 
The Bond was issued under its recent Social Bond Framework, for which Natixis acted as a Joint Structurer.

This issue was once again a great success with an order book of €13.8 billion, bringing together more than 200 investors (66% ESG investors).

Natixis acted as a Joint Bookrunner.

Acting as a privileged partner of the French State to tackle the impacts of the sanitary crisis. CADES will, in the upcoming years, potentially become one of the most active issuers in the primary market: €20bn of financing in 2020 and €116bn between 2021 and 2023.

The proceeds of CADES social bonds issuances will be allocated to financing and/or refinancing the previous, current, future deficits of the various branches/regimes of the Social Security system.  

Link to press release

Link to the Social Bond Framework

Banque Fédérative du Crédit Mutuel has successfully issued its inaugural Green Bond

On 1st october 2020, BFCM priced its inaugural €750m 7-year Green Senior Preferred benchmark bond. The Green Bond was a great success with investors, with an impressive oversubscription rate of 4.4 times.

Natixis acted as a Joint Bookrunner.

The transaction is part of ensemble#nouveaumonde strategic plan and was issued under the Crédit Mutuel Alliance Fédérale Green, Social and Sustainability Bond Framework.

The proceeds of this Green Bond will be used to finance, or refinance loans in the following Green Eligible Categories: green buildings, renewable energy and low carbon transport.

Link to the Green, Social and Sustainability Bond Framework

Link to the Second Party Opinion (Vigeo Eiris)

Enel successfully launched a new Sustainability-Linked Bond

On 13th October 2020, Enel successfully launched a denominated Sustainability-Linked Bond, on the sterling market totaling 500 million pounds sterling. The issue was almost six times oversubscribed, with orders of about 3 billion pounds sterling.

The new Sustainability-Linked Bond was issued under Enel “Sustainability-Linked Finance Framework. This framework was reviewed by the Second Party Opinion Provider, Vigeo Eiris.

Natixis acted as a Joint Bookrunner.

The Bond structure is linked to the UN SDG7 “Affordable & Clean Energy”. The bond is linked to the Key Performance Indicator (KPI) of “Renewable Installed Capacity Percentage” and to the related achievement of a Sustainability Performance Target (“SPT”) equal to or greater than 60% by December 31, 2022. If the target is not achieved, a 25-bps step-up in the coupon will be applied.

Link to the Sustainability-Linked Financing Framework

Link to the Second Party Opinion (Vigeo Eiris)

Link to press release

Land NRW placed a new Sustainability Bond

On 5th October 2020, Land NRW issued a new EUR 2.4bn 15-year Sustainability benchmark Bond at MS + 7 bps. Land NRW's sustainable transaction attracted strong demand, as it was launched with order books in excess of EUR 6 billion and more than 160 investors participated.

Natixis acted as a Joint Bookrunner.

The proceeds will be used to finance projects and initiatives of NRW with clear environmental and/or social benefits Education as Inclusion and Social Coherence, Public Transport and Local Mobility, Climate Protection and Energy Transition, Protection of Natural Resources, Sustainable Urban Development.

Modernization of Educational and Public Health Facilities.

Link to the Sustainability Bond Framework

Link to the Second Party Opinion (ISS ESG)

Mizuho Financial Group issued a new Green Bond

On 1st October 2020, Mizuho Financial Group, Inc. (“Mizuho FG”) successfully priced its EUR 500mn 5-year fixed rate green senior unsecured bond. The transaction received strong interest from investors, as the final book closed in excess of EUR2.5bn, approximately 5 times over-subscribed.

Natixis acted as a Sustainability Advisor and Joint Bookrunner.

The Green Bond was issued under Mizuho Green Bond Framework, which received a second-party opinion from Sustainalytics.

The proceeds of the Bond will be used to finance environmentally friendly projects, including renewable energy, clean transportation, pollution prevention and control, green buildings.

Link to the Overview of the Green Bond Framework

Link to the Second Party Opinion (Sustainalytics)

Link to press release

Société du Grand Paris issues two new green bonds and secures half of the financing for Grand Paris Express

On 7th October 2020, Société du Grand Paris issued a dual-tranche EUR Green 10-year and 40-year for a total amount of EUR 6 Billion. Both transactions attracted strong demand, as it was launched with order books in excess of EUR 8,5 billion. The 10-year tranche was launched with final size fixed at EUR 3 Billion.

Natixis acted as a Joint Bookrunner for the 10-year tranche.

The proceeds will be used to finance the Grand Paris Express project, with the construction of new electric metro lines and line extensions and construction, development of new stations and technical centres for electric metros (clean transportation).

Link to the Green Bond Framework

Link to the Second Party Opinion (Sustainalytics)

Link to press release

Bank of China Paris priced the first ever “Blue Bonds” from a Commercial Bank

On 14th September 2020, Bank of China Limited, Paris Branch (“BOC Paris”) successfully priced its USD 500m-3-year fixed rate blue senior unsecured bond.

Natixis acted as a Joint Global Coordinator on the offering

Founded in 1912, Bank of China is one of the four majors state-owned banks in the People’s Republic of China. As the first commercial bank to issue Blue Bonds, BOC demonstrates its leadership to promote a sustainable blue economy and protection of water resources.

This Blue Bonds issuance is aligned with the Green Bond Principles, protecting marine ecological environment and exploring offshore wind energy. EY verified it through a Pre-issuance Attestation Report. 

Link to the Green Bond Programme:

https://pic.bankofchina.com/bocappd/report/202009/P020200913763660583185.pdf

Management Statement:

https://pic.bankofchina.com/bocappd/report/202009/P020200913763661831433.pdf

Attestation Report on Pre-issuance of Bank of China’s 2020 Blue Bonds:

https://pic.bankofchina.com/bocappd/report/202009/P020200913763655433465.pdf

Beijing Enterprises sells Euro Green Bond

Beijing Enterprises has raised EUR500 million from a five-year guaranteed Green Bond.

Natixis acted as a Sustainability Advisor and Joint Bookrunner.

The proceeds of the Bond will be used to refinance existing offshore debt incurred in connection with the funding of the eligible green assets as described under the Green Finance Framework.

"There was decent interest from Chinese banks although the euro, which was specifically requested by the borrower, is a less preferred currency than US dollars," a lead said.

Green Bond Framework:

https://www.behl.com.hk/en/csr/green_finance_framework.pdf

 

Cades breaks all records with Inaugural Social Bond

On September 9th 2020, Caisse d’Amortissement de la Dette Sociale (CADES) issued an inaugural EUR 5bn long 10-year Social Bond under its newly published Social Bond Framework.

Natixis acted as a Joint Structurer on the structuration of the framework and as a Joint Bookrunner.

Acting as a privileged partner of the French State to help finance the impacts of the sanitary crisis, CADES will become one of the biggest issuers in the primary market for the upcoming years.

The proceeds of CADES social bonds issuances will be allocated to financing and/or refinancing the previous, current, future deficits of the various branches/regimes of the Social Security system.  

Link to press release:

https://cades.fr/pdf/communiques/uk/2020/CP_10sept2020_VA.pdf

Social Bond Framework:

https://cades.fr/pdf/investisseurs/uk/Cades_Social_Bond_Framework_3sept2020.pdf

Commerzbank has successfully issued its second Green Bond

On 16th September 2020, Commerzbank successfully issued its second Green Bond with an issuance volume of EUR500 million, with a term of 5.5 years.

This non-preferred senior attracted investor interest, because the final order book at re-offer was 8 times subscribed.

Natixis acted as a Joint Bookrunner.

Commerzbank has earmarked the proceeds from the Bond for loans for onshore and offshore wind projects and solar projects in Germany, other European countries, and North America. The projects financed by the Green Bond aim to help avoid CO2 emissions of around 850.000 tons per year.

Link to the Green Bond Framework:

https://www.commerzbank.com/media/aktionaere/fremdkapitalgeber/green_bond/2018_1

0/Commerzbank_Green_Bond_Framework.pdf

Link to Press Release:

https://www.commerzbank.de/en/hauptnavigation/presse/pressemitteilungen/archiv1/202

0/quartal_20_03/presse_archiv_detail_20_03_90570.html

Fotowatio Renewable Ventures signed Spain’s first Climate Bonds-Certified green loan

On September 8th 2020, Fotowatio Renewable Ventures, a leading global developer of renewable utility-scale projects, have closed a non-recourse project financing of the 138 MW dc San Serván photovoltaic plant in Spain. FRV signed a EUR64 million green-loan.

Natixis acted as underwriter and sole green loan coordinator.

This is the first Climate Bond Certified green transaction in Spain. The dc Serván photovoltaic plant is expected to be fully operational by 2022. It will contribute to the Spanish government’s Long-Term Decarbonisation Strategy (ELP), which aims to neutralize the country’s greenhouse gas emissions by 2050.

Link to press release:

https://frv.com/en/frvs-san-servan-solar-plant-closes-financing-including-the-first-climate-bond-certified-green-transaction-in-spain-of-e-64m/

 

Successful launch of Icade Santé's Inaugural Social Bond: The first ever benchmark Social Bond for a Corporate

On September 10th 2020, Icade Santé, the leading French Healthcare Property Investment Company, successfully priced an inaugural social bond 10Y €600m senior bond issue.

This transaction is the first ever benchmark social bond issue for a corporate, all currencies included.

Natixis acted as a Structuring Advisor and Sustainability Coordinator.

The proceeds from this issue will be used to refinance acquisitions or projects relating to existing assets (construction, development, extension and refurbishment) located in France, which have an inherently positive social impact: access to care for all.

Link to press release:

https://www.icade.fr/en/content/download/3557/file/successful-launch-of-icade-sante-s-first-social-bond.pdf

Social Bond Framework:

https://icade-sante.fr/en/content/download/782/file/Icade-Sant---Social-Bond-Framework---Septembre-2020.pdf

 

Mexico issues 'world's first' sovereign bond linked to U.N. sustainability goals

Launched on September 14th 2020, in a series of pioneering milestones, the € 750million, seven-year Bond represents Mexico’s first-ever Sustainable Development Goals (SDG) Bond and the first SDG Bond issued by a sovereign country. This is also the first SDG to feature the participation of the United Nations (UN), through the United Nations Development Program (UNDP).

The book peaked at EUR 4.8bn million, from 267 global investment firms. The high level of oversubscription and subsequent compression achieved allowed Mexico to print its second lowest coupon and one of its largest order books in the Euro market.

The transaction speaks to the value investors are placing on sustainable bonds and the expansion of the development finance market.

Natixis acted as a Sole SDG Sovereign Structuring Advisor.

The proceeds from this issue will be used to finance projects that may be have a tangible SDG contribution.

Link to press release:

https://www.undp.org/content/undp/en/home/news-centre/news/2020/Historic_890_million_SDG_Bond_issued_by_Mexico.html

SDG Sovereign Bond Framework:

https://www.finanzaspublicas.hacienda.gob.mx/work/models/Finanzas_Publicas/docs/ori/

Espanol/SDG/UMS-SDG_Sustainable_Bond_Framework.pdf

Mexico’s SDG Bond Framework – Natixis Article:

https://gsh.cib.natixis.com/our-center-of-expertise/articles/mexico-s-sdg-bond-framework-a-two-fold-eligibility-and-unique-governance

 

Munich Re has issued a subordinated green bond

On September 2020, Munich Re has issued a subordinated green bond, with the volume issued amounting to €1.25bn. The bond has a coupon of 1.25% and will mature in 2041.

This bond highlights Munich Re’s commitment to using the capital markets to help achieve a climate-friendly transformation of the economy.

Natixis acted as a Co-lead Manager.

The proceeds from this issue will be used to finance or refinance sustainable projects in accordance with the company’s Green Bond Framework.

Projects include investments of equity and debt in renewable energy, energy efficiency, clean transportation, green buildings, sustainable water and wastewater management, the eco-efficient and/or circular economy, and the environmentally sustainable management of living natural resources and land.

Green Bond Framework:

https://www.munichre.com/content/dam/munichre/global/content-pieces/documents/investor-relations/MunichRe-Green-Bond-Framework.pdf/_jcr_content/renditions/original./MunichRe-Green-Bond-Framework.pdf

Link to press release:

https://www.munichre.com/en/company/media-relations/media-information-and-corporate-news/media-information/2020/2020-09-24-munichre-issues-green-bond.html

 

Orange has successfully issued its Inaugural Sustainability Bond

On September 9th 2020, Orange announced the successful launch of its inaugural Sustainability Bond for a total amount of EUR 500 million. The issue was more than five times oversubscribed, with great success from French and international Socially Responsible investors.

Natixis acted as a Joint Bookrunner.

Orange intends to allocate about 40% of this first bond issuance in digital and social inclusion projects and the rest in improving energy efficiency and promoting the circular economy.

This issuance reflects Orange five-year strategic plan “Engage 2025”. The aim of this strategic plan is to align digital and social inclusion.

Link to press release:

https://ml-eu.globenewswire.com/Resource/Download/acc8b8b0-62e6-4f06-a532-6c0d9cdc3fcc

The World Bank (IBRD) issued its fourth EUR benchmark of the year with a EUR 1.5 Billion 15-year Sustainable Development Bond.

The World Bank (IBRD, Aaa/AAA) priced a 15-year euro-denominated benchmark bond maturing in September 2035, raising EUR 1.5 billion from institutional investors around the globe to support the financing of its sustainable development activities. This is IBRD’s largest euro-denominated bond offered at this maturity.

Natixis acted as a Joint Lead manager for the transaction.

With annual issuances between US$55-US$65 billion, World Bank bonds support the financing of programs that further the Sustainable Development Goals. World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association.

“This was the fourth transaction by the World Bank in the euro this year and exemplifying the strong name they have developed in this market issued a successful new transaction taking advantage of a brief but exceptional window. This deal amassed significant demand as the issuer targeted duration in an impressive final result on the longer end of the curve. As always, it is a privilege to work alongside this issuer and in particular as they continue to raise funding in their global sustainability efforts,” said Thomas Leocadio, Head of International SSA, Natixis.

Link to the investor presentation :

http://pubdocs.worldbank.org/en/712481565969307980/World-Bank-Investor-Presentation.pdf

Link to the description of the Framework:

https://treasury.worldbank.org/en/about/unit/treasury/ibrd/ibrd-sustainable-development-bonds#2

NWB Bank has successfully issued an SDG Housing Bond

On August 26th, Nederlandse Waterschapsbank (NWB) issued a new EUR 1bn 15-year SDG Housing Bond at MS + 10 bps.

Natixis acted as a Joint Lead Manager.

The proceeds will be used to provide loans to the social housing sector in the Netherlands falling within the following eligibility categories: Affordable housing, Socioeconomic advancement and empowerment, access to essential services, affordable basic infrastructure, employment generation.

Each eligible asset are defined to promote the UN Sustainable Development Goals.

Links:

Press Release:

https://nwbbank.com/en/news/New-SDG-Housing-Bond-brings-total-of-issued-sustainable-bonds-above-15-billion

SDG Housing Bond Framework :

https://nwbbank.com/download_file/298/530

Agence France Locale issued an Inaugural Sustainability Bond

On July 6th 2020, the Agence France Locale (“AFL”) issued its first Euro benchmark of 2020 with an inaugural long 7-year Sustainability bond at OAT + 35 bps.

Natixis acted as joint bookrunner on this transaction.

AFL issued the inaugural sustainability bond under its new Sustainability Bond Framework, presented to investors on June 29th. A Second Party Opinion was delivered by Vigeo Eiris.

The proceeds will be used to finance or refinance loans granted by AFL to Local Authorities falling within the following eligibility categories : Education and culture, Employment, Access to essential health services, Social inclusion, Low-carbon public transportation, Pollution prevention and control, Renewable energy, Sustainable water and wastewater management, Affordable housing, and Affordable and sustainable infrastructure.

Links :

Corporate presentation : http://www.agence-france-locale.fr/sites/afl/files/base_documentaire/2020-06/Investor%20Presentation%20-%20June%202020%20-%20Def_1.pdf

Sustainability Bond Framework :

http://www.agence-france-locale.fr/sites/afl/files/base_documentaire/2020-06/AFL_Sustainability%20Bond%20Framework_200626_EngV.pdf

Generali successfully concludes the placement of its second Green Bond

On June 30th, Generali announced the issuance of a Green EUR Denominated Tier 2 Bond due in July 2031 under its existing Green Bond Framework. The new 11y bullet Green Tier 2 issue was successfully priced AT MS+255BPS.

Natixis acted as a Joint bookrunner.

The proceeds will be allocated to finance/refinance Green Eligible project Bonds, Equity Investments, Assets, falling within the following eligibility categories : Green buildings, Renewable energy (electricity and heat production), Energy efficiency, Clean transportation, Sustainable water management, Recycling, Re-use & Waste management.

Links:

Press Release : https://www.generali.com/media/press-releases/all/2020/Generali-successfully-concludes-the-placement-of-its-second-green-bond

Green Bond Framework : https://www.generali.com/investors/debt-ratings/green-bond-framework

Tereos takes out the first sustainability-linked loan in the Brazilian sugar and ethanol sector with a new US$ 105 million long-term financing

On June 15th 2020, Tereos Sugar & Energy Brazil (“TSEB”), one of the leading producers of sugar and ethanol in Brazil, closed a new USD105 million credit facility, the first sustainability-linked loan in the Brazilian sugar & ethanol industry. This facility agreement is also the first operation of this kind on a global level for Tereos Group, present in 18 countries.

Natixis acted as Joint Bookrunner, Mandated Lead Arranger and Sustainability Coordinator.

Through the sustainability-linked mechanism, Tereos commits to four ambitious sustainability performance targets under four key performance indicators, including annual reduction in GHG emissions per ton of processed cane, annual reduction in water consumption per ton of processed sugarcane, an annual increase in certified sugarcane in addition to an improved score for environmental, social & corporate governance (ESG) formal evaluation.

As part of the facility, Tereos will have an interest rate margin reduction for each year if it meets its sustainability performance targets, with an independent auditor providing a validation.

Link to press release : https://tereos.com/en/press-releases/tereos-takes-out-the-first-sustainability-linked-loan-in-the-brazilian-sugar-and-ethanol-sector-with-a-new-us-105-mi-longterm-financing/

Unédic repeats past performance with its second Social Bond issuance.

On June 10th, Unédic issued its second EUR Social benchmark bond for the funding year 2020 and its first Social bond under the long term EMTN programme.

The new EUR 4bn benchmark transaction, backed up by the explicit guarantee from the French state, was priced at OAT 25bps. Final orderbook finished in excess of EUR 8.75bn which represents the largest orderbook ever achieved by Unédic. 

Links:

GSH news : https://gsh.cib.natixis.com/our-center-of-expertise/articles/unedic-issued-the-two-largest-social-bonds-ever-in-the-midst-of-the-covid-19-crisis

Social Bond Framework : https://www.unedic.org/sites/default/files/2020-07/2020%2006%2030%20Social%20Bond%20Framework%20Un%C3%A9

dic%20-%20EN%20VDEF.pdf

 

CaixaBank issued its first Covid-19 Social transaction

On July 1st 2020, CaixaBank came out with a €1bn 6yNC5y Senior Preferred 1st Covid-19 Social transaction, inaugural callable bond for the issuer. Natixis acted as a Joint Bookrunner.

This bond is a Social bond as defined in its Sustainable Development Goals Framework published in August 2019, with a SPO delivered by Sustainalytics.

The proceeds will be used as loans and be granted to micro-enterprises and SMEs, to mitigate the economic and social impacts derived from COVID-19 in the most economically disadvantaged regions of Spain.

Links :

Corporate presentation : https://www.caixabank.com/deployedfiles/caixabank/Estaticos/PDFs/Inversores_institucio

nales/COVID_19_Response_Social_Bond_SP_Issuance.pdf

Sustainable Development Goals Framework :

https://www.caixabank.com/deployedfiles/caixabank/Estaticos/PDFs/Inversores_institucio

nales/2019CaixaBankSDGsFramework.pdf

Natixis sole green coordinator for financing of Kincardine, set to be the world’s largest floating offshore windfarm

Cobra Instalaciones y Servicios S.A. (“Cobra”) has raised £380m for the financing of Kincardine Offshore Windfarm Limited (“Kincardine”), which comprises the construction of a 50MW floating offshore wind farm, located south-east of Aberdeen, Scotland.

Natixis was one of the mandated lead arrangers, underwriters and bookrunners and acted as a Green Loan Coordinator for the transaction.

Through the certification process conducted by Natixis, the financing of the project was awarded the “Certified Climate Bond” label by Climate Bonds Initiative (“CBI”). Vigeo Eiris has been mandated as verifier of the Marine Renewable Energy Criteria. These scientific criteria ensure that the certified loan is consistent with the 2°C warming limit in the Paris Agreement. Under the certification, Cobra will report regularly on the project’s adherence to KPIs defined in accordance with CBI guidelines.

When completed, Kincardine will be the largest floating offshore windfarm in the world.

Link to press release : https://pressroom-en.natixis.com/news/natixis-sole-green-coordinator-for-financing-of-kincardine-set-to-be-the-worlds-largest-floating-offshore-windfarm-2996-8e037.html

Sparebanken Vest Boligkreditt issued its first Green Covered Bond.

On Tuesday 30th June, Sparebanken Vest Boligkreditt (SVEGNO issued their first public benchmark in 2020, as well as their inaugural Green Covered Bond. Natixis acted as a joint bookrunner

The final order book involved more than 50 accounts and it is estimated that around 60% of the book was driven by green / ESG investors.

Sparebanken Vest intends to allocate the net proceeds of this Green Covered Bond to a finance or refinance a loan portfolio of new and existing energy efficient residential buildings in Norway (Residential Green Buildings).  

Link to the Green bond framework : https://www.spv.no/om-oss/investor-relations/gronne-obligasjoner

Islamic Development Bank issued an inaugural Sustainable Sukuk

On Thursday 18th June, the Islamic Development Bank successfully priced its inaugural Sustainable Sukuk issuance under its Sustainable Finance Framework (under the Social Projects Category).  Natixis acted as a Joint Bookrunner.

The proceeds from the 5 year USD 1.5 billion Sukuk will be allocated to IsDB’s Member Countries in tackling the aftermath of the Covid-19 pandemic.

This transaction represents the 15th public issuance (out of 16 issuances) including the debut/inaugural 5-year EUR 1 billion Green Sukuk last 27th November 2019 for which Natixis has been mandated by IsDB since 2013 as a strong testament of our relationship with the supranational.  

Link to the Sustainable Finance Framework: https://www.isdb.org/sites/default/files/media/documents/2019-11/IsDB%20Sustainable%20Finance%20Framework%20%28Nov%202019%29.pdf

Link to press release : https://www.isdb.org/news/islamic-development-bank-issues-us-15-billion-debut-sustainability-sukuk-in-response-to-covid-19

KBC issued its second Green Bond

On June 9th 2020, KBC Group NV (“KBC”) priced a 7NC6 €500m (no grow) Green Senior HoldCo. This is KBC’s second Green Bond following their inaugural 5yr Senior HoldCo printed in June 2018 and also its first callable Senior HoldCo. Natixis acted as a Joint Bookrunner for the transaction.

The proceeds will be allocated to finance/refinance Green Eligible Assets,  as defined by the eligibility criteria described in KBC’s Green Bond Framework.

Link to the Green Bond Framework : https://www.kbc.com/content/dam/kbccom/doc/investor-relations/7-Debt-issuance/Green-Bonds/20180605_KBC_GB_Framework.pdf

 

Natixis acted as a Joint Bookrunner and sole structurer for Unédic’s Inaugural Social €4bn 6y bond

 On Friday May 15 th the French unemployment insurance agency UNEDIC issued an inaugural 4bn 6 year Social bond at OAT+ 36 bps under its NeuMTN program.

Proceeds will primarily be used to fund crisis response measures rolled out by UNEDIC.

The innovative format for this transaction will be a reference point for other issuers to follow UNEDIC strategically set themselves up for success on this trade which is none the less evident by the biggest orderbook ever achieved (€7.75bn), and the largest social bond ever priced in capital markets.

Link to press release: 

https://www.unedic.org/espace-presse/actualites/covid19-lunedic-emet-un-social-bond-de-4mds-pour-financer-les-mesures

Natixis acted as a Joint Bookrunner for BBVA’s Inaugural Social Covid-19 Bond

On May 27th 2020, BBVA announced its Inaugural Social Covid-19 Senior Preferred Bond. It is actually the first ever Social Covid-19 bond from a private issuer in the EURO market.

Demand was close to €5 billion, nearly five times more than the initial offer. The funds will be primarily allocated to mitigating the severe economic and social impact caused directly and indirectly by the COVID-19 pandemic.

The bond was launched under BBVA’s framework for green, social and sustainable issues, published in April 2018. It is a senior preferred debt bond, issued in euros with a five year maturity (maturity on June 4, 2025).

Link to press release: https://www.bbva.com/en/bbva-is-the-first-private-financial-institution-in-europe-to-issue-a-covid-19-social-bond/

Natixis acted as a Joint Bookrunner and a Sustainability Advisor for the Region Wallonne inaugural EUR 1bn 20-year Social Bond

Following its April Sustainable Bond issuance targeting both green and social projects, the Region Wallonne returned to the capital markets with increased funding needs in light of the Covid-19 pandemic. The proceeds of its inaugural Social Bond  will be used to partly finance Covid-19 related social expenditures and other recurrent social investments within Region Wallonne's Sustainability Bond Framework.

The EUR 1 bn transaction was significantly oversubscribed with total order book reaching over EUR 1.5 bn. The Sustainability Bond Framework received a Second Party Opinion from Vigeo Eiris.

Link to the investor presentation: 

https://www.wallonie.be/sites/default/files/202005/wallonia_sb2020_investor_presentation

h1_2020.pdf

 

Natixis acted as a Joint Lead Manager for SNAB’s Inaugural Green Preferred Senior transaction

 On May 6th 2020, SBAB Bank AB (SBAB) issued a €500mn 5-year Senior Preferred Unsecured transaction which was also its inaugural Green €uro denominated transaction.

The total order book reached over EUR 2.25 bn with 114 investors participating.

The deal was an opportunity to introduce SBAB’s newly updated Green bond Framework and the Use of Proceeds of this transaction will be allocated by the issuer to Eligible Green Loans.

Link to the investor presentation: 

https://www.sbab.se/download/18.3222ba39171c128158215a/1588682370465/Green%2_

SP_May2020_FINAL.pdf

Natixis acted as a Joint Bookrunner and sole Green Advisor for BPCE’s Inaugural Green Covered €1.25bn 20year bond

On May 19th 2020, Groupe BPCE launched its inaugural €1.25bn 10-year Green Building Covered Bond – the first 10yr Covered bond since the beginning of the Covid-19 crisis.

The €6.4bn order book, including 179 accounts, is the biggest on a euro benchmark covered bond in over six years.

The proceeds of the green covered bonds are earmarked for the refinancing of residential mortgage loans on energy efficient properties, with some €6bn of loans eligible as green assets. As with most green covered bonds, the buildings must be among the 15% most carbon efficient in their jurisdiction.

Link to press release:

https://newsroom-en.groupebpce.fr/news/groupe-bpce-successfully-completes-its-first-green-covered-bond-issue-e5c0-53927.html

Natixis acted as a Joint Bookrunner and a Sustainability Advisor for two Sustainability Bonds: the EUR 500mn 10-year new issuance and the EUR 200mn Tap of May 2034 Sustainability Bond.

Région Wallonie has returned the Market with a dual-tranche issuance with a new sustainability bond of a 500m EUR and a 200m EUR which has a pre-issuance second party opinion from Vigeo Eiris.

With spreads set at guidance and books in excess of EUR 600, this transaction (the second of its kind this week) highlights Region Wollonie’s ability and potential as they continue to build their sustainable curve in international capital markets.

According to the investor presentation from the electronic roadshow held, the proceeds will be allocated in line with its 2019 Sustainability Bond Framework as follows :

  • 55% of the proceeds for social projects
  • 45% of the proceeds for environmental project

Signing of a 200 M€ syndicated loan linked to Sustainability-Performance with Neoen SA

Neoen SA, one of the world’s leading and fastest-growing independent producers of exclusively renewable energy,  has agreed its first syndicated loan facility for an amount of 200 million euros, choosing to index the margin to Environmental, Social and Governance (ESG) criteria. The financing is made made of two tranches maturing on July 31, 2024:

  • 125 million euros amortizing loan, and
  • 75 million euros revolving credit facility

Natixis acted as Sustainability CoordinatorDocumentation Agent and Facility Agent, assisting Neoen SA in the process to link this financing to two ESG criteria which are in line with its sustainability strategy:

  • Corruption prevention and,
  • Independent ESG rating provided by Vigeo Eiris

The loan’s pricing will be adjusted based on Neoen’s performance on these indicators, which will be assessed on an annual basis. This transaction shows “Neoen SA willingness to combine both financial performance, environmental exemplarity and social responsibility” as stated by Xavier Barbaro (Neoen’s Chairman and Chief Executive Officer).

Link to press release: https://www.neoen.com/var/fichiers/1584443716-pr-syndicated-loan-neoen.pdf

Natixis acted as Mandated Lead Arranger and Green Advisor for Decathlon EUR 125M Sustainability-Linked Loan

Decathlon - which combines two activities: the creation of sports products and their distribution online and in stores - has chosen to link the cost of it's financing to the company’s environmental and social performance by integrating its sustainable development criteria into its EUR 125M Credit line.

Decathlon's credit now includes a credit margin adjustment mechanism, reviewed at least once a year, based on six ESG KPIs making it possible to link the ESG performance of Decathlon to the economic performance of the company:

  • The satisfaction of its employees;
  • The satisfaction of its sports users;
  • The level of human responsibility in the production of its suppliers;
  • The level of environmental responsibility in production of its suppliers;
  • The reduction in intensity of CO2 emissions by product sold;
  • The development of environmental labeling of Decathlon branded products

Those six KPIs are audited as part of the Extra-Financial Performance Declaration by external third party Mazars and validated by EthiFinance as the extra-financial analysis and consulting agency to carry out the second party opinion on the relevance of its environmental and social indicators.

The benefits that Decathlon or the Lenders could recover depending on ESG performance will be redistributed to associations or projects of a societal or environmental nature.

Link to press release: https://www.decathlon.media/shared/dossiers-presse/pdfs/20200305_cpresse-decathlon-finance_esg_media_fr_86k1sfi0.pdf

Natixis acted as Green Structuring Advisor & Joint Bookrunner for ENGIE new 2.5 bn EUR triple tranche senior Green bond

ENGIE (A3 st /A- st / A st par Moody's, S&P et Fitch), a global reference in low-carbon energy and services, issued a a triple tranche senior bond for a total of EUR 2.5 billion on Friday 20, 2020:

  • EUR 1 billion , 5 years, 1.375% coupon
  • EUR 750 million, 8 years, 1.75% coupon - Green
  • EUR 750 million, 12 years, 2.125% coupon - Green

The transaction was significantly oversubscribed with total order book reaching over EUR 9.5 billion at the final price.

Natixis acted as Green Structuring Advisor and Joint Bookrunner, assisting ENGIE in the global update of its Green Financing Framework to align it with the Group’s ambition to become the world leader in the carbon neutrality transition for corporates and local authorities and best market practices.

The Use of Proceeds of the 8Y and 12Y tranches will be allocated in line with the Eligible Project Categories outlined in the framework: Renewable energy production, Energy storage, Transmission and distribution infrastructure, Energy efficiency, Carbon dioxide capture, transportation, storage and Carbone capture and reuse, Green buildings, Clean transportation, Environmentally sustainable management of living natural resources and land use. The Green Financing Framework received a Second Party Opinion from Vigeo Eiris.

With this new issue, the total outstanding amount of green bonds issued by ENGIE is EUR 11.15 billion, confirming the company’s leadership in the green bond market as the largest corporate issuer worldwide.

Link to press release: https://www.engie.com/en/journalists/press-releases/triple-tranche-senior-bond

Basque Country successfully priced a 10y €500m Sustainable Bond with Natixis Joint Bookrunner

Basque Country (A3 /A- by Moody’s & Fitch) has carried out its third issue of Sustainable Bond on the 26th of March 2020. The EUR 500m, 10 years, 0.850% transaction was very well received by the investor base meeting outstanding demand (more than 7 times higher than offer) with 120 investors from 17 countries and demonstrating again the strong investors’ appetite and the good credit recognition of the issuer.

Natixis acted as Joint Bookrunner on the transaction, further consolidating its footprint in the Sustainable space for Iberian SSA/FIG issuers.

The proceeds will be allocated in line with Basque Country Sustainability Bond framework which benefits from a Second Party Opinion from Sustainalytics. More specifically, the allocation of proceeds for this transaction will be as follows:

  • 81% of proceeds allocated to Basque Country social programs:
    • € 130M to health sector (pharmacy financing, expansion of hospitals and health centers);
    • € 225M to social Policies (emergency assistance social, family support programs, education and housing projects).
  • 19% of proceeds allocated to Basque Country environmental programs linked to renewable energy, sustainable transport, prevention and control of environmental pollution as well as water and wastewater management.

Link to thhe press release: https://www.euskadi.eus/gobierno-vasco/-/noticia/2020/presentacion-de-la-iii-emision-del-bono-sostenible-euskadi/

Natixis acted as Mandated Lead Arranger and Sustainability Coordinator for ACWA Power USD 758M Sustainable Loan

ACWA Power and Natixis are proud to announce that the Taweelah IWP has obtained the first-ever “sustainable loan” qualification for a water desalination project globally.  Closed in September 2019, this USD758 million project finance loan, with a contractual tenor of 32.4 years, will finance what will become the largest reverse osmosis plant in the world when completed in 2022.

The tariff offered by ACWA Power for the Al Taweelah IWP was the lowest achieved to date in the world for desalinated water.

Natixis acted as initial mandated lead arrangerdocumentation bankhedge providerglobal facility agent and sustainable loan coordinatorNatixis also acted as sole arranger and investment agent under the Islamic Equity Bridge Loan for ACWA Power’s equity portion

This project finance loan is dedicated to the financing of the design, construction, operation and maintenance of a state-of-the-art, 200 million imperial gallons per day reserve osmosis plant and associated infrastructure and facilities. The plant will be constructed in the existing Taweelah complex, in the Emirate of Abu Dhabi, United Arab Emirates. The project also includes a 68 MW peak photovoltaic power plant to complement the energy supply from the procurer’s grid. The project, when constructed, will also set another world record by utilizing the lowest amount of energy per gallon of desalinated water produced.

Vigeo Eiris confirmed that this project is aligned with the four components of both Green Loan Principles and the Social Bond Principles. According to Vigeo Eiris, the Taweelah project will constitute “a state-of-the-art desalination plant, including modern and energy efficient technologies for water production (seawater reverse osmosis), higher standards and monitoring of its effluents’ water quality”. The technology employed is considered by the World Bank as the most energy efficient and best-in-class among existing desalination technology.

Thanks to the photovoltaic power plant integrated to the project, renewable energy is expected to account for at least 30% of the project’s electricity consumption within ten years, with a target of raising this figure to 55% by the end of the first quarter life of the project. The project is expected to substitute two local thermal desalination plants of lower capacity to be decommissioned in the coming years, improving local air quality and reducing greenhouse gas emissions.

Link to press release: https://pressroom-en.natixis.com/news/taweelah-iwp-obtains-the-first-ever-sustainable-loan-qualification-for-a-desalination-project-5fe3-8e037.html

The new Eureden Group issued a Sustainability-linked Euro PP

On December, 7th 2020, the Brittany-based cooperative specialized in agriculture, food and agri-retail successfully issued with a group of top tier investors, a €46m 3-tranches Sustainability-Linked Euro PP with 5, 7 & 8-years tenors.

The coupon step-up/step-down mechanism is based on 3 KPIs aligned with the ESG objectives of the Group:

  • The health and safety of employees
  • The development of alternatives to phytosanitary products
  • The development of renewable energies

Natixis acted as joint Bookrunner and Documentation Agent on this Euro PP transaction.

Previously, on September 2020, Eureden first concluded its €547m inaugural Sustainability-Linked syndicated facility with 15 banks, composed of term loans and a RCF, all with a maturity of 5 years. Natixis acted as Active Bookrunner on the syndicated facilities

The signature of these two facilities will enable the Group to refinance its existing debt, finance its working capital and general corporate needs and support its development through investments and external growth operations.

The Fibre 44 Project Company led by the Consortium comprised of Axione, Vauban and Banque des Territoires (CDC) just qualified its project financing as a “Sustainable Loan” last December 22nd.    

The project aims at building and operating a Very high-speed broadband network in the Loire Atlantique Département.

Vigeo Eiris was appointed as the Second Party Opinion Provider and confirmed the framework was aligned with the Green Loan Principles and the Social Bond Principles making it the “First Sustainable Loan” in France.

Natixis acted as joint Bookrunner and sole Sustainability Advisor on this transaction.

Albioma’s successful inaugural Sustainability-Linked Euro PP

On 30th of November 2020 Albioma successfully priced for the second time since May 2014 a dual tranche 7 yr & 8 yr Euro PP for €100 m. Thanks to oversubscription and stronger credit quality since 2014 this new Euro PP is larger, longer and cheaper.

Albioma’s Sustainability-Linked Financing Framework has been tied to one Key Performance Indicator (KPI) and its associated Sustainability Performance Targets (SPTs). The KPI chosen is the Energy Mix indicator measuring the share of Renewable Energy volumes in (GWh) in the Energy Production Mix for any given year. The Sustainability Performance Targets are a 80% share of Renewable Energy in the Energy Production Mix by 2023 and 90% by 2025. 

Depending on whether the targets are met, a margin adjustment mechanism (bonus/malus) that may reach up to 25 base points will produce a variation in the interest rate applying to the bonds.

The Sustainability-Linked format chosen by Albioma and its strong results allowed to attract high quality investors.

Natixis as Arranger and Sustainability Structuring Advisor for this transaction.

Link to the Framework

Link to the Second Party Opinion (Vigeo Eiris)

BPCE issues €100 million of transition bonds, invested by AXA IM, to finance Natixis’ assets contributing to the energy transition

On December 9th, 2020, AXA Investment Managers, on behalf of AXA Group, invested in a €100 million of senior non-preferred transition bond issued by BPCE (10-year maturity with a coupon of 0.55%).

The proceeds will be used to refinance Natixis’ assets contributing to energy transition, consisting of project and/or corporate loans from relevant sectors, i.e. high emissions reduction potential as well as their contribution to a low carbon economy (such as transport, power, midstream gas, mining and metals).

The transition bonds have two key innovative features. The selected portfolio includes:

  • “Sustainability-linked” corporate loans integrating a credit margin adjustment linked to the achievement of KPIs related to the climate and the energy transition.
  • Project loans selected based on Natixis’ in-house Green Weighting Factor methodology, an innovative mechanism that links Natixis’ analytical capital allocation to the degree of climate and environmental performance of each financing, enabling it to actively manage and steer its balance sheet’s climate impact and transition strategy.

More information: https://pressroom-en.natixis.com/news/bpce-issues-eur100-million-of-transition-bonds-invested-by-axa-im-to-finance-natixis-assets-contributing-to-the-energy-transition-62e7-8e037.html

The Pierre Fabre group has renegotiated its revolving credit facility by linking it to CSR criteria

Pierre Fabre's renegotiated revolving credit facility now includes a bonus-penalty system that links the cost of the credit facility to two CSR criteria driven by “Green Mission Pierre Fabre”:  

  • the reduction of the Group’s carbon footprint (a 30% reduction of emissions by 2025 versus 2015);
  • the implementation of an innovative social- and eco-designed product initiative (100% of new product developments as from 2019, 50% of the entire product portfolio by 2023, excluding pharmaceutical specialties). 

Natixis acted as a mandated lead arranger in the transaction.

Link to the Press Release: https://www.pierre-fabre.com/en/press_release/pierre-fabre-successfully-renegotiates-its-revolving-credit-facility-by-linking-it-to

Buyout of Kersia by IK Investment: First LBO financing in France that includes sustainability-Linked features

The acquisition of Kersia by IK Investment has been financed through a Sustainability-linked syndicated leverage loan structure including RCF & term loan B tranches, in line with the LMA’s Sustainability-linked loan Principles.

Natixis was pleased to act as Sole Sustainability coordinator for this transaction.

See our Market Watch Section for more information 

Société Française de Financement Local has successfully issued its Inaugural Green Bond

On November 13th, 2020, SFIL, the 100% publicly owned leading French Agency supporting Local Investment and Export, successfully priced an inaugural €500m 8-year Green Bond.

After three successful Thematic-Bond issuances from SFIL’s subsidiary CAFFIL in 2019 and 2020 under a covered bond format (2 Social and 1 Green), SFIL is expanding its ESG issuance footprint with a first Thematic-Bond issuance from SFIL in the SSA market.

This Green Bond offering is done out of the same overarching framework, on which both CAFFIL and SFIL are possible issuers.

Natixis acted as a Joint Bookrunner in this transaction and as Green Structuring Advisor for SFIL CAFFIL Green bond framework.

Link to the Framework

Link to the SPO

Schneider Electric launched the first ever Sustainability-linked convertible bond

On November 24th, 2020, Schneider Electric, the French multinational providing energy and digital solutions for efficiency and sustainability, issued the first ever sustainability-linked convertible bond for a nominal amount of approximately €650 million. The zero-coupon bonds are convertible into new or existing shares and are due in 2026.
For this transaction, Schneider Electric has defined three KPIs with associated sustainability performance targets and methodologies, which will be tracked, reported and externally verified:

  1. Deliver 800 megatons of saved and avoided CO2 emissions for customers by 2025
  2. Increase gender diversity: 50% women hiring, 40% women among front-line managers, 30% women in leadership teams by 2025
  3. Train 1 million underprivileged people in energy management by 2025

Link to the Framework

Link to the SPO

NRG Energy issued the first ever SLB from North America

On November 18th, 2020, NRG Energy successfully priced a bridge takeout financing with a $900mm 7NCL Senior Secured Sustainability-Linked Notes.

The Sustainability-Linked Bond represents a great milestone for NRG, and for the broader sustainability themed financing market, as it represents many firsts including:

  1. 1st ever SLB from a North American issuer;
  2. 1st ever SLB from a Power Company outside of Europe; and
  3. 1st ever SLB with a “most ambitious target” clause – ensuring any future issuance must be of equal or greater climate ambition.

The SLB tranche was a huge success, and the client has also committed to appointing Natixis as an Active Bookrunner in its 2021 bond issuance in recognition of the work achieved.

Natixis acted as Joint Bookrunner and Sole Sustainability Structurer & Coordinator (Senior Secured Notes due 2027) and as Senior Co-Manager (Senior Secured Notes due 2025) in support of NRG’s $3.63 billion acquisition of Direct Energy.

This transaction is one of the year’s largest acquisitions in the U.S. energy space to be structured and executed in 2020, and its very strong reception in the market reflects the tremendous depth and liquidity of both the investment grade and high yield markets.

Link to the Framework

Link to the SPO

Engie’s new Green Hybrid Bond breaking records

On November 19th, 2020, Engie, the global reference in low-carbon energy and services, successfully priced a new €850m PerpNC8 Green Hybrid.

Returning to the EUR primary market after its triple senior tranches in March 2020 & its single senior tranche in June 2020, Engie issued a new PerpNC8 bond in parallel to a tender offer on three hybrid bonds, one of them being a Green bond - the first time a Green hybrid bond is tendered.

Earlier in the year, Natixis acted as Green Structuring Advisor assisting ENGIE in the global update of its Green Financing Framework to align it with the Group’s ambition to become the world leader in the carbon neutrality transition for corporates and local authorities and best market practices.

With this new issue, Engie issued €2.35bn of Green bonds in 2020 and thus comforted its status as uncontested largest corporate green bond issuer (€12bn since their first Green Bond in 2014).

Natixis acted as an Active Bookrunner in the transaction.

86% of allocations were made towards investors considered as sustainable by Natixis.

Link to the Framework

Link to the Second Party Opinion (Vigeo Eiris)

Colonial signs €1 billion Sustainability-Linked Loan

On November 5th, 2020, Spanish Real Estate company Inmobiliaria Colonial has signed a €1bn SLL through a revolving syndicated credit facility.

The new loan is structured in two tranches of €500 million each and will provide the company with liquidity for its business over the next five years, with the possibility of extending it for a further two years. It replaces two credit lines that totaled €850m.

The banking pool is made up of various national and international financial institutions, including CaixaBank acting as the agent bank, and BBVA, BNP and Natixis, as well as CaixaBank again, acting as sustainability agents.

Michelin bags €2.5bn Sustainability-Linked Loan

Michelin, the French tyre maker, has signed a 2.5bn multi-currency Sustainability-linked Revolving Credit Facility.

The Facility has a tenor of 3 years and includes two 1-year extension options, exercisable at the end of year 1 and 2, at each lender’s sole discretion. The proceeds from the Facility will be used for general corporate purposes including the refinancing of the Company’s existing EUR 1,500,000,000 facility dated 12 July 2011 as amended on 20 July 2012 and 10 December 2014.

The CSR clause links pricing to a set of sustainability performance targets including reducing greenhouse gas emissions and reduction of the environmental impact of its sites.

Natixis acted as a mandated lead arranger in the transaction.

Airbus signed a Sustainability-Linked credit facility

On October 21st, 2020, the French aerospace company signed a €6bn sustainability-linked revolving credit facility.

The borrower’s new facility has a three-year maturity and was provided by more than 30 banks among which Natixis was designated as a lead arranger in the transaction.

Airbus’s financing was used to term out €3bn of the €15bn liquidity facility put in place in March to bolster the company’s liquidity in the wake of the Covid-19 crisis, and to refinance the company’s existing €3bn RCF, which was due to mature in October 2021.

One of the KPI is Airbus’ performance as measured by the CDP Climate Change score. CDP is a not-for-profit charity that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.

Agence Française de Développement has successfully launched its Inaugural SDG Bond

On October 22nd 2020, Agence Française de Développement (AFD) successfully priced an inaugural €2 billion 7-year Sustainable bond.

The EUR 2 billion transaction was significantly oversubscribed with a final order book reaching over EUR 5 billion.

AFD issued this SDG Bond under its newly published SDG Bond Framework.

Natixis acted as a Sole Structurer on the structuration of the framework and as a Joint Bookrunner.

This Framework was designed in relation with UN Sustainable Development Goals (SDGs), which are at the heart of AFD Group’s strategy and are fully incorporated into loans identification and selection processes.

Link SDG Bond Framework

Link to the Second Party Opinion (Vigeo Eiris)

New success for CADES with its €5 billion Social Bond

On 29th September 2020, la Caisse d’Amortissement de la Dette Sociale (CADES) issued a new EUR 5bn long 7-year Social Bond. 
The Bond was issued under its recent Social Bond Framework, for which Natixis acted as a Joint Structurer.

This issue was once again a great success with an order book of €13.8 billion, bringing together more than 200 investors (66% ESG investors).

Natixis acted as a Joint Bookrunner.

Acting as a privileged partner of the French State to tackle the impacts of the sanitary crisis. CADES will, in the upcoming years, potentially become one of the most active issuers in the primary market: €20bn of financing in 2020 and €116bn between 2021 and 2023.

The proceeds of CADES social bonds issuances will be allocated to financing and/or refinancing the previous, current, future deficits of the various branches/regimes of the Social Security system.  

Link to press release

Link to the Social Bond Framework

Banque Fédérative du Crédit Mutuel has successfully issued its inaugural Green Bond

On 1st october 2020, BFCM priced its inaugural €750m 7-year Green Senior Preferred benchmark bond. The Green Bond was a great success with investors, with an impressive oversubscription rate of 4.4 times.

Natixis acted as a Joint Bookrunner.

The transaction is part of ensemble#nouveaumonde strategic plan and was issued under the Crédit Mutuel Alliance Fédérale Green, Social and Sustainability Bond Framework.

The proceeds of this Green Bond will be used to finance, or refinance loans in the following Green Eligible Categories: green buildings, renewable energy and low carbon transport.

Link to the Green, Social and Sustainability Bond Framework

Link to the Second Party Opinion (Vigeo Eiris)

Enel successfully launched a new Sustainability-Linked Bond

On 13th October 2020, Enel successfully launched a denominated Sustainability-Linked Bond, on the sterling market totaling 500 million pounds sterling. The issue was almost six times oversubscribed, with orders of about 3 billion pounds sterling.

The new Sustainability-Linked Bond was issued under Enel “Sustainability-Linked Finance Framework. This framework was reviewed by the Second Party Opinion Provider, Vigeo Eiris.

Natixis acted as a Joint Bookrunner.

The Bond structure is linked to the UN SDG7 “Affordable & Clean Energy”. The bond is linked to the Key Performance Indicator (KPI) of “Renewable Installed Capacity Percentage” and to the related achievement of a Sustainability Performance Target (“SPT”) equal to or greater than 60% by December 31, 2022. If the target is not achieved, a 25-bps step-up in the coupon will be applied.

Link to the Sustainability-Linked Financing Framework

Link to the Second Party Opinion (Vigeo Eiris)

Link to press release

Land NRW placed a new Sustainability Bond

On 5th October 2020, Land NRW issued a new EUR 2.4bn 15-year Sustainability benchmark Bond at MS + 7 bps. Land NRW's sustainable transaction attracted strong demand, as it was launched with order books in excess of EUR 6 billion and more than 160 investors participated.

Natixis acted as a Joint Bookrunner.

The proceeds will be used to finance projects and initiatives of NRW with clear environmental and/or social benefits Education as Inclusion and Social Coherence, Public Transport and Local Mobility, Climate Protection and Energy Transition, Protection of Natural Resources, Sustainable Urban Development.

Modernization of Educational and Public Health Facilities.

Link to the Sustainability Bond Framework

Link to the Second Party Opinion (ISS ESG)

Mizuho Financial Group issued a new Green Bond

On 1st October 2020, Mizuho Financial Group, Inc. (“Mizuho FG”) successfully priced its EUR 500mn 5-year fixed rate green senior unsecured bond. The transaction received strong interest from investors, as the final book closed in excess of EUR2.5bn, approximately 5 times over-subscribed.

Natixis acted as a Sustainability Advisor and Joint Bookrunner.

The Green Bond was issued under Mizuho Green Bond Framework, which received a second-party opinion from Sustainalytics.

The proceeds of the Bond will be used to finance environmentally friendly projects, including renewable energy, clean transportation, pollution prevention and control, green buildings.

Link to the Overview of the Green Bond Framework

Link to the Second Party Opinion (Sustainalytics)

Link to press release

 

Société du Grand Paris issues two new green bonds and secures half of the financing for Grand Paris Express

On 7th October 2020, Société du Grand Paris issued a dual-tranche EUR Green 10-year and 40-year for a total amount of EUR 6 Billion. Both transactions attracted strong demand, as it was launched with order books in excess of EUR 8,5 billion. The 10-year tranche was launched with final size fixed at EUR 3 Billion.

Natixis acted as a Joint Bookrunner for the 10-year tranche.

The proceeds will be used to finance the Grand Paris Express project, with the construction of new electric metro lines and line extensions and construction, development of new stations and technical centres for electric metros (clean transportation).

Link to the Green Bond Framework

Link to the Second Party Opinion (Sustainalytics)

Link to press release

On September 2020, Eureden first concluded its €547m inaugural Sustainability-Linked syndicated facility with 15 banks, composed of term loans and a RCF, all with a maturity of 5 years.

Natixis acted as Active Bookrunner on the syndicated facilities.

Bank of China Paris priced the first ever “Blue Bonds” from a Commercial Bank

On 14th September 2020, Bank of China Limited, Paris Branch (“BOC Paris”) successfully priced its USD 500m-3-year fixed rate blue senior unsecured bond.

Natixis acted as a Joint Global Coordinator on the offering

Founded in 1912, Bank of China is one of the four majors state-owned banks in the People’s Republic of China. As the first commercial bank to issue Blue Bonds, BOC demonstrates its leadership to promote a sustainable blue economy and protection of water resources.

This Blue Bonds issuance is aligned with the Green Bond Principles, protecting marine ecological environment and exploring offshore wind energy. EY verified it through a Pre-issuance Attestation Report. 

Link to the Green Bond Programme:

https://pic.bankofchina.com/bocappd/report/202009/P020200913763660583185.pdf

Management Statement:

https://pic.bankofchina.com/bocappd/report/202009/P020200913763661831433.pdf

Attestation Report on Pre-issuance of Bank of China’s 2020 Blue Bonds:

https://pic.bankofchina.com/bocappd/report/202009/P020200913763655433465.pdf

 

Beijing Enterprises sells Euro Green Bond

Beijing Enterprises has raised EUR500 million from a five-year guaranteed Green Bond.

Natixis acted as a Sustainability Advisor and Joint Bookrunner.

The proceeds of the Bond will be used to refinance existing offshore debt incurred in connection with the funding of the eligible green assets as described under the Green Finance Framework.

"There was decent interest from Chinese banks although the euro, which was specifically requested by the borrower, is a less preferred currency than US dollars," a lead said.

Green Bond Framework:

https://www.behl.com.hk/en/csr/green_finance_framework.pdf

Cades breaks all records with Inaugural Social Bond

On September 9th 2020, Caisse d’Amortissement de la Dette Sociale (CADES) issued an inaugural EUR 5bn long 10-year Social Bond under its newly published Social Bond Framework.

Natixis acted as a Joint Structurer on the structuration of the framework and as a Joint Bookrunner.

Acting as a privileged partner of the French State to help finance the impacts of the sanitary crisis, CADES will become one of the biggest issuers in the primary market for the upcoming years.

The proceeds of CADES social bonds issuances will be allocated to financing and/or refinancing the previous, current, future deficits of the various branches/regimes of the Social Security system.  

Link to press release:

https://cades.fr/pdf/communiques/uk/2020/CP_10sept2020_VA.pdf

Social Bond Framework:

https://cades.fr/pdf/investisseurs/uk/Cades_Social_Bond_Framework_3sept2020.pdf

Commerzbank has successfully issued its second Green Bond

On 16th September 2020, Commerzbank successfully issued its second Green Bond with an issuance volume of EUR500 million, with a term of 5.5 years.

This non-preferred senior attracted investor interest, because the final order book at re-offer was 8 times subscribed.

Natixis acted as a Joint Bookrunner.

Commerzbank has earmarked the proceeds from the Bond for loans for onshore and offshore wind projects and solar projects in Germany, other European countries, and North America. The projects financed by the Green Bond aim to help avoid CO2 emissions of around 850.000 tons per year.

Link to the Green Bond Framework:

https://www.commerzbank.com/media/aktionaere/fremdkapitalgeber/green_bond/2018_1

0/Commerzbank_Green_Bond_Framework.pdf

Link to Press Release:

https://www.commerzbank.de/en/hauptnavigation/presse/pressemitteilungen/archiv1/202

0/quartal_20_03/presse_archiv_detail_20_03_90570.html

Fotowatio Renewable Ventures signed Spain’s first Climate Bonds-Certified green loan

On September 8th 2020, Fotowatio Renewable Ventures, a leading global developer of renewable utility-scale projects, have closed a non-recourse project financing of the 138 MW dc San Serván photovoltaic plant in Spain. FRV signed a EUR64 million green-loan.

Natixis acted as underwriter and sole green loan coordinator.

This is the first Climate Bond Certified green transaction in Spain. The dc Serván photovoltaic plant is expected to be fully operational by 2022. It will contribute to the Spanish government’s Long-Term Decarbonisation Strategy (ELP), which aims to neutralize the country’s greenhouse gas emissions by 2050.

Link to press release:

https://frv.com/en/frvs-san-servan-solar-plant-closes-financing-including-the-first-climate-bond-certified-green-transaction-in-spain-of-e-64m/

Successful launch of Icade Santé's Inaugural Social Bond: The first ever benchmark Social Bond for a Corporate

On September 10th 2020, Icade Santé, the leading French Healthcare Property Investment Company, successfully priced an inaugural social bond 10Y €600m senior bond issue.

This transaction is the first ever benchmark social bond issue for a corporate, all currencies included.

Natixis acted as a Structuring Advisor and Sustainability Coordinator.

The proceeds from this issue will be used to refinance acquisitions or projects relating to existing assets (construction, development, extension and refurbishment) located in France, which have an inherently positive social impact: access to care for all.

Link to press release:

https://www.icade.fr/en/content/download/3557/file/successful-launch-of-icade-sante-s-first-social-bond.pdf

Social Bond Framework:

https://icade-sante.fr/en/content/download/782/file/Icade-Sant---Social-Bond-Framework---Septembre-2020.pdf

Mexico issues 'world's first' sovereign bond linked to U.N. sustainability goals

Launched on September 14th 2020, in a series of pioneering milestones, the € 750million, seven-year Bond represents Mexico’s first-ever Sustainable Development Goals (SDG) Bond and the first SDG Bond issued by a sovereign country. This is also the first SDG to feature the participation of the United Nations (UN), through the United Nations Development Program (UNDP).

The book peaked at EUR 4.8bn million, from 267 global investment firms. The high level of oversubscription and subsequent compression achieved allowed Mexico to print its second lowest coupon and one of its largest order books in the Euro market.

The transaction speaks to the value investors are placing on sustainable bonds and the expansion of the development finance market.

Natixis acted as a Sole SDG Sovereign Structuring Advisor.

The proceeds from this issue will be used to finance projects that may be have a tangible SDG contribution.

Link to press release:

https://www.undp.org/content/undp/en/home/news-centre/news/2020/Historic_890_million_SDG_Bond_issued_by_Mexico.html

SDG Sovereign Bond Framework:

https://www.finanzaspublicas.hacienda.gob.mx/work/models/Finanzas_Publicas/docs/ori/

Espanol/SDG/UMS-SDG_Sustainable_Bond_Framework.pdf

Mexico’s SDG Bond Framework – Natixis Article:

https://gsh.cib.natixis.com/our-center-of-expertise/articles/mexico-s-sdg-bond-framework-a-two-fold-eligibility-and-unique-governance

Munich Re has issued a subordinated green bond

On September 2020, Munich Re has issued a subordinated green bond, with the volume issued amounting to €1.25bn. The bond has a coupon of 1.25% and will mature in 2041.

This bond highlights Munich Re’s commitment to using the capital markets to help achieve a climate-friendly transformation of the economy.

Natixis acted as a Co-lead Manager.

The proceeds from this issue will be used to finance or refinance sustainable projects in accordance with the company’s Green Bond Framework.

Projects include investments of equity and debt in renewable energy, energy efficiency, clean transportation, green buildings, sustainable water and wastewater management, the eco-efficient and/or circular economy, and the environmentally sustainable management of living natural resources and land.

Green Bond Framework:

https://www.munichre.com/content/dam/munichre/global/content-pieces/documents/investor-relations/MunichRe-Green-Bond-Framework.pdf/_jcr_content/renditions/original./MunichRe-Green-Bond-Framework.pdf

Link to press release:

https://www.munichre.com/en/company/media-relations/media-information-and-corporate-news/media-information/2020/2020-09-24-munichre-issues-green-bond.html

Orange has successfully issued its Inaugural Sustainability Bond

On September 9th 2020, Orange announced the successful launch of its inaugural Sustainability Bond for a total amount of EUR 500 million. The issue was more than five times oversubscribed, with great success from French and international Socially Responsible investors.

Natixis acted as a Joint Bookrunner.

Orange intends to allocate about 40% of this first bond issuance in digital and social inclusion projects and the rest in improving energy efficiency and promoting the circular economy.

This issuance reflects Orange five-year strategic plan “Engage 2025”. The aim of this strategic plan is to align digital and social inclusion.

Link to press release: https://ml-eu.globenewswire.com/Resource/Download/acc8b8b0-62e6-4f06-a532-6c0d9cdc3fcc

The World Bank (IBRD) issued its fourth EUR benchmark of the year with a EUR 1.5 Billion 15-year Sustainable Development Bond.

The World Bank (IBRD, Aaa/AAA) priced a 15-year euro-denominated benchmark bond maturing in September 2035, raising EUR 1.5 billion from institutional investors around the globe to support the financing of its sustainable development activities. This is IBRD’s largest euro-denominated bond offered at this maturity.

Natixis acted as a Joint Lead manager for the transaction.

With annual issuances between US$55-US$65 billion, World Bank bonds support the financing of programs that further the Sustainable Development Goals. World Bank bonds are aligned with the Sustainability Bond Guidelines published by the International Capital Market Association.

“This was the fourth transaction by the World Bank in the euro this year and exemplifying the strong name they have developed in this market issued a successful new transaction taking advantage of a brief but exceptional window. This deal amassed significant demand as the issuer targeted duration in an impressive final result on the longer end of the curve. As always, it is a privilege to work alongside this issuer and in particular as they continue to raise funding in their global sustainability efforts,” said Thomas Leocadio, Head of International SSA, Natixis.

Link to the investor presentation :

http://pubdocs.worldbank.org/en/712481565969307980/World-Bank-Investor-Presentation.pdf

Link to the description of the Framework:

https://treasury.worldbank.org/en/about/unit/treasury/ibrd/ibrd-sustainable-development-bonds#2

NWB Bank has successfully issued an SDG Housing Bond

On August 26th, Nederlandse Waterschapsbank (NWB) issued a new EUR 1bn 15-year SDG Housing Bond at MS + 10 bps.

Natixis acted as a Joint Lead Manager.

The proceeds will be used to provide loans to the social housing sector in the Netherlands falling within the following eligibility categories: Affordable housing, Socioeconomic advancement and empowerment, access to essential services, affordable basic infrastructure, employment generation.

Each eligible asset are defined to promote the UN Sustainable Development Goals.

Links:

Press Release:

https://nwbbank.com/en/news/New-SDG-Housing-Bond-brings-total-of-issued-sustainable-bonds-above-15-billion

SDG Housing Bond Framework :

https://nwbbank.com/download_file/298/530

 

 

 

Agence France Locale issued an Inaugural Sustainability Bond

On July 6th 2020, the Agence France Locale (“AFL”) issued its first Euro benchmark of 2020 with an inaugural long 7-year Sustainability bond at OAT + 35 bps.

Natixis acted as joint bookrunner on this transaction.

AFL issued the inaugural sustainability bond under its new Sustainability Bond Framework, presented to investors on June 29th. A Second Party Opinion was delivered by Vigeo Eiris.

The proceeds will be used to finance or refinance loans granted by AFL to Local Authorities falling within the following eligibility categories : Education and culture, Employment, Access to essential health services, Social inclusion, Low-carbon public transportation, Pollution prevention and control, Renewable energy, Sustainable water and wastewater management, Affordable housing, and Affordable and sustainable infrastructure.

Links :

Corporate presentation : http://www.agence-france-locale.fr/sites/afl/files/base_documentaire/2020-06/Investor%20Presentation%20-%20June%202020%20-%20Def_1.pdf

Sustainability Bond Framework :

http://www.agence-france-locale.fr/sites/afl/files/base_documentaire/2020-06/AFL_Sustainability%20Bond%20Framework_200626_EngV.pdf

Generali successfully concludes the placement of its second Green Bond

On June 30th, Generali announced the issuance of a Green EUR Denominated Tier 2 Bond due in July 2031 under its existing Green Bond Framework. The new 11y bullet Green Tier 2 issue was successfully priced AT MS+255BPS.

Natixis acted as a Joint bookrunner.

The proceeds will be allocated to finance/refinance Green Eligible project Bonds, Equity Investments, Assets, falling within the following eligibility categories : Green buildings, Renewable energy (electricity and heat production), Energy efficiency, Clean transportation, Sustainable water management, Recycling, Re-use & Waste management.

Links:

Press Release : https://www.generali.com/media/press-releases/all/2020/Generali-successfully-concludes-the-placement-of-its-second-green-bond

Green Bond Framework : https://www.generali.com/investors/debt-ratings/green-bond-framework

Tereos takes out the first sustainability-linked loan in the Brazilian sugar and ethanol sector with a new US$ 105 million long-term financing

On June 15th 2020, Tereos Sugar & Energy Brazil (“TSEB”), one of the leading producers of sugar and ethanol in Brazil, closed a new USD105 million credit facility, the first sustainability-linked loan in the Brazilian sugar & ethanol industry. This facility agreement is also the first operation of this kind on a global level for Tereos Group, present in 18 countries.

Natixis acted as Joint Bookrunner, Mandated Lead Arranger and Sustainability Coordinator.

Through the sustainability-linked mechanism, Tereos commits to four ambitious sustainability performance targets under four key performance indicators, including annual reduction in GHG emissions per ton of processed cane, annual reduction in water consumption per ton of processed sugarcane, an annual increase in certified sugarcane in addition to an improved score for environmental, social & corporate governance (ESG) formal evaluation.

As part of the facility, Tereos will have an interest rate margin reduction for each year if it meets its sustainability performance targets, with an independent auditor providing a validation.

Link to press release : https://tereos.com/en/press-releases/tereos-takes-out-the-first-sustainability-linked-loan-in-the-brazilian-sugar-and-ethanol-sector-with-a-new-us-105-mi-longterm-financing/

Unédic repeats past performance with its second Social Bond issuance.

On June 10th, Unédic issued its second EUR Social benchmark bond for the funding year 2020 and its first Social bond under the long term EMTN programme.

The new EUR 4bn benchmark transaction, backed up by the explicit guarantee from the French state, was priced at OAT 25bps. Final orderbook finished in excess of EUR 8.75bn which represents the largest orderbook ever achieved by Unédic. 

 

Links:

GSH news : https://gsh.cib.natixis.com/our-center-of-expertise/articles/unedic-issued-the-two-largest-social-bonds-ever-in-the-midst-of-the-covid-19-crisis

Social Bond Framework : https://www.unedic.org/sites/default/files/2020-07/2020%2006%2030%20Social%20Bond%20Framework%20Un%C3%A9dic%20-%20EN%20VDEF.pdf

CaixaBank issued its first Covid-19 Social transaction

On July 1st 2020, CaixaBank came out with a €1bn 6yNC5y Senior Preferred 1st Covid-19 Social transaction, inaugural callable bond for the issuer. Natixis acted as a Joint Bookrunner.

This bond is a Social bond as defined in its Sustainable Development Goals Framework published in August 2019, with a SPO delivered by Sustainalytics.

The proceeds will be used as loans and be granted to micro-enterprises and SMEs, to mitigate the economic and social impacts derived from COVID-19 in the most economically disadvantaged regions of Spain.

 

Link :

Corporate presentation : https://www.caixabank.com/deployedfiles/caixabank/Estaticos/PDFs/Inversores_institucio

nales/COVID_19_Response_Social_Bond_SP_Issuance.pdf

Sustainable Development Goals Framework :

https://www.caixabank.com/deployedfiles/caixabank/Estaticos/PDFs/Inversores_institucio

nales/2019CaixaBankSDGsFramework.pdf

Natixis sole green coordinator for financing of Kincardine, set to be the world’s largest floating offshore windfarm

Cobra Instalaciones y Servicios S.A. (“Cobra”) has raised £380m for the financing of Kincardine Offshore Windfarm Limited (“Kincardine”), which comprises the construction of a 50MW floating offshore wind farm, located south-east of Aberdeen, Scotland.

Natixis was one of the mandated lead arrangers, underwriters and bookrunners and acted as a Green Loan Coordinator for the transaction.

Through the certification process conducted by Natixis, the financing of the project was awarded the “Certified Climate Bond” label by Climate Bonds Initiative (“CBI”). Vigeo Eiris has been mandated as verifier of the Marine Renewable Energy Criteria. These scientific criteria ensure that the certified loan is consistent with the 2°C warming limit in the Paris Agreement. Under the certification, Cobra will report regularly on the project’s adherence to KPIs defined in accordance with CBI guidelines.

When completed, Kincardine will be the largest floating offshore windfarm in the world.

 

Link to press release : https://pressroom-en.natixis.com/news/natixis-sole-green-coordinator-for-financing-of-kincardine-set-to-be-the-worlds-largest-floating-offshore-windfarm-2996-8e037.html

Sparebanken Vest Boligkreditt issued its first Green Covered Bond.

On Tuesday 30th June, Sparebanken Vest Boligkreditt (SVEGNO issued their first public benchmark in 2020, as well as their inaugural Green Covered Bond. Natixis acted as a joint bookrunner

The final order book involved more than 50 accounts and it is estimated that around 60% of the book was driven by green / ESG investors.

Sparebanken Vest intends to allocate the net proceeds of this Green Covered Bond to a finance or refinance a loan portfolio of new and existing energy efficient residential buildings in Norway (Residential Green Buildings).  

 

Link to the Green bond framework : https://www.spv.no/om-oss/investor-relations/gronne-obligasjoner

Islamic Development Bank issued an inaugural Sustainable Sukuk

On Thursday 18th June, the Islamic Development Bank successfully priced its inaugural Sustainable Sukuk issuance under its Sustainable Finance Framework (under the Social Projects Category).  Natixis acted as a Joint Bookrunner.

The proceeds from the 5 year USD 1.5 billion Sukuk will be allocated to IsDB’s Member Countries in tackling the aftermath of the Covid-19 pandemic.

This transaction represents the 15th public issuance (out of 16 issuances) including the debut/inaugural 5-year EUR 1 billion Green Sukuk last 27th November 2019 for which Natixis has been mandated by IsDB since 2013 as a strong testament of our relationship with the supranational.  

 

Link to the Sustainable Finance Framework: https://www.isdb.org/sites/default/files/media/documents/2019-11/IsDB%20Sustainable%20Finance%20Framework%20%28Nov%202019%29.pdf

Link to press release : https://www.isdb.org/news/islamic-development-bank-issues-us-15-billion-debut-sustainability-sukuk-in-response-to-covid-19

KBC issued its second Green Bond

On June 9th 2020, KBC Group NV (“KBC”) priced a 7NC6 €500m (no grow) Green Senior HoldCo. This is KBC’s second Green Bond following their inaugural 5yr Senior HoldCo printed in June 2018 and also its first callable Senior HoldCo. Natixis acted as a Joint Bookrunner for the transaction.

The proceeds will be allocated to finance/refinance Green Eligible Assets,  as defined by the eligibility criteria described in KBC’s Green Bond Framework.

 

Link to the Green Bond Framework : https://www.kbc.com/content/dam/kbccom/doc/investor-relations/7-Debt-issuance/Green-Bonds/20180605_KBC_GB_Framework.pdf

Natixis acted as a Joint Bookrunner for BBVA’s Inaugural Social Covid-19 Bond

On May 27th 2020, BBVA announced its Inaugural Social Covid-19 Senior Preferred Bond. It is actually the first ever Social Covid-19 bond from a private issuer in the EURO market.

Demand was close to €5 billion, nearly five times more than the initial offer. The funds will be primarily allocated to mitigating the severe economic and social impact caused directly and indirectly by the COVID-19 pandemic.

The bond was launched under BBVA’s framework for green, social and sustainable issues, published in April 2018. It is a senior preferred debt bond, issued in euros with a five year maturity (maturity on June 4, 2025).

Link to press release: 

https://www.bbva.com/en/bbva-is-the-first-private-financial-institution-in-europe-to-issue-a-covid-19-social-bond/

Natixis acted as a Joint Bookrunner and sole structurer for Unédic’s Inaugural Social €4bn 6y bond

 On Friday May 15 th the French unemployment insurance agency UNEDIC issued an inaugural 4bn 6 year Social bond at OAT+ 36 bps under its NeuMTN program.

Proceeds will primarily be used to fund crisis response measures rolled out by UNEDIC.

The innovative format for this transaction will be a reference point for other issuers to follow UNEDIC strategically set themselves up for success on this trade which is none the less evident by the biggest orderbook ever achieved (€7.75bn), and the largest social bond ever priced in capital markets.

Link to press release: 

https://www.unedic.org/espace-presse/actualites/covid19-lunedic-emet-un-social-bond-de-4mds-pour-financer-les-mesures

Natixis acted as a Joint Bookrunner and a Sustainability Advisor for two Sustainability Bonds: the EUR 500mn 10-year new issuance and the EUR 200mn Tap of May 2034 Sustainability Bond.

Région Wallonie has returned the Market with a dual-tranche issuance with a new sustainability bond of a 500m EUR and a 200m EUR which has a pre-issuance second party opinion from Vigeo Eiris.

With spreads set at guidance and books in excess of EUR 600, this transaction (the second of its kind this week) highlights Region Wollonie’s ability and potential as they continue to build their sustainable curve in international capital markets.

According to the investor presentation from the electronic roadshow held, the proceeds will be allocated in line with its 2019 Sustainability Bond Framework as follows :

  • 55% of the proceeds for social projects
  • 45% of the proceeds for environmental projects

Signing of a 200 M€ syndicated loan linked to Sustainability-Performance with Neoen SA

Neoen SA, one of the world’s leading and fastest-growing independent producers of exclusively renewable energy,  has agreed its first syndicated loan facility for an amount of 200 million euros, choosing to index the margin to Environmental, Social and Governance (ESG) criteria. The financing is made made of two tranches maturing on July 31, 2024:

  • 125 million euros amortizing loan, and
  • 75 million euros revolving credit facility

Natixis acted as Sustainability CoordinatorDocumentation Agent and Facility Agent, assisting Neoen SA in the process to link this financing to two ESG criteria which are in line with its sustainability strategy:

  • Corruption prevention and,
  • Independent ESG rating provided by Vigeo Eiris

The loan’s pricing will be adjusted based on Neoen’s performance on these indicators, which will be assessed on an annual basis. This transaction shows “Neoen SA willingness to combine both financial performance, environmental exemplarity and social responsibility” as stated by Xavier Barbaro (Neoen’s Chairman and Chief Executive Officer).

 

Link to press release: https://www.neoen.com/var/fichiers/1584443716-pr-syndicated-loan-neoen.pdf

Natixis acted as Mandated Lead Arranger and Green Advisor for Decathlon EUR 125M Sustainability-Linked Loan

Decathlon - which combines two activities: the creation of sports products and their distribution online and in stores - has chosen to link the cost of it's financing to the company’s environmental and social performance by integrating its sustainable development criteria into its EUR 125M Credit line.

Decathlon's credit now includes a credit margin adjustment mechanism, reviewed at least once a year, based on six ESG KPIs making it possible to link the ESG performance of Decathlon to the economic performance of the company:

  • The satisfaction of its employees;
  • The satisfaction of its sports users;
  • The level of human responsibility in the production of its suppliers;
  • The level of environmental responsibility in production of its suppliers;
  • The reduction in intensity of CO2 emissions by product sold;
  • The development of environmental labeling of Decathlon branded products

Those six KPIs are audited as part of the Extra-Financial Performance Declaration by external third party Mazars and validated by EthiFinance as the extra-financial analysis and consulting agency to carry out the second party opinion on the relevance of its environmental and social indicators.

The benefits that Decathlon or the Lenders could recover depending on ESG performance will be redistributed to associations or projects of a societal or environmental nature.

Link to press release: https://www.decathlon.media/shared/dossiers-presse/pdfs/20200305_cpresse-decathlon-finance_esg_media_fr_86k1sfi0.pdf

Natixis acted as Green Structuring Advisor & Joint Bookrunner for ENGIE new 2.5 bn EUR triple tranche senior Green bond

ENGIE (A3 st /A- st / A st par Moody's, S&P et Fitch), a global reference in low-carbon energy and services, issued a a triple tranche senior bond for a total of EUR 2.5 billion on Friday 20, 2020:

  • EUR 1 billion , 5 years, 1.375% coupon
  • EUR 750 million, 8 years, 1.75% coupon - Green
  • EUR 750 million, 12 years, 2.125% coupon - Green

The transaction was significantly oversubscribed with total order book reaching over EUR 9.5 billion at the final price.

Natixis acted as Green Structuring Advisor and Joint Bookrunner, assisting ENGIE in the global update of its Green Financing Framework to align it with the Group’s ambition to become the world leader in the carbon neutrality transition for corporates and local authorities and best market practices.

The Use of Proceeds of the 8Y and 12Y tranches will be allocated in line with the Eligible Project Categories outlined in the framework: Renewable energy production, Energy storage, Transmission and distribution infrastructure, Energy efficiency, Carbon dioxide capture, transportation, storage and Carbone capture and reuse, Green buildings, Clean transportation, Environmentally sustainable management of living natural resources and land use. The Green Financing Framework received a Second Party Opinion from Vigeo Eiris.

With this new issue, the total outstanding amount of green bonds issued by ENGIE is EUR 11.15 billion, confirming the company’s leadership in the green bond market as the largest corporate issuer worldwide.

Link to press release: https://www.engie.com/en/journalists/press-releases/triple-tranche-senior-bond

Basque Country successfully priced a 10y €500m Sustainable Bond with Natixis Joint Bookrunner

Basque Country (A3 /A- by Moody’s & Fitch) has carried out its third issue of Sustainable Bond on the 26th of March 2020. The EUR 500m, 10 years, 0.850% transaction was very well received by the investor base meeting outstanding demand (more than 7 times higher than offer) with 120 investors from 17 countries and demonstrating again the strong investors’ appetite and the good credit recognition of the issuer.

Natixis acted as Joint Bookrunner on the transaction, further consolidating its footprint in the Sustainable space for Iberian SSA/FIG issuers.

The proceeds will be allocated in line with Basque Country Sustainability Bond framework which benefits from a Second Party Opinion from Sustainalytics. More specifically, the allocation of proceeds for this transaction will be as follows:

  • 81% of proceeds allocated to Basque Country social programs:
    • € 130M to health sector (pharmacy financing, expansion of hospitals and health centers);
    • € 225M to social Policies (emergency assistance social, family support programs, education and housing projects).
  • 19% of proceeds allocated to Basque Country environmental programs linked to renewable energy, sustainable transport, prevention and control of environmental pollution as well as water and wastewater management.

Link to thhe press release: https://www.euskadi.eus/gobierno-vasco/-/noticia/2020/presentacion-de-la-iii-emision-del-bono-sostenible-euskadi/

Natixis acted as Mandated Lead Arranger and Sustainability Coordinator for ACWA Power USD 758M Sustainable Loan

ACWA Power and Natixis are proud to announce that the Taweelah IWP has obtained the first-ever “sustainable loan” qualification for a water desalination project globally.  Closed in September 2019, this USD758 million project finance loan, with a contractual tenor of 32.4 years, will finance what will become the largest reverse osmosis plant in the world when completed in 2022.

The tariff offered by ACWA Power for the Al Taweelah IWP was the lowest achieved to date in the world for desalinated water.

Natixis acted as initial mandated lead arrangerdocumentation bankhedge providerglobal facility agent and sustainable loan coordinatorNatixis also acted as sole arranger and investment agent under the Islamic Equity Bridge Loan for ACWA Power’s equity portion

This project finance loan is dedicated to the financing of the design, construction, operation and maintenance of a state-of-the-art, 200 million imperial gallons per day reserve osmosis plant and associated infrastructure and facilities. The plant will be constructed in the existing Taweelah complex, in the Emirate of Abu Dhabi, United Arab Emirates. The project also includes a 68 MW peak photovoltaic power plant to complement the energy supply from the procurer’s grid. The project, when constructed, will also set another world record by utilizing the lowest amount of energy per gallon of desalinated water produced.

Vigeo Eiris confirmed that this project is aligned with the four components of both Green Loan Principles and the Social Bond Principles. According to Vigeo Eiris, the Taweelah project will constitute “a state-of-the-art desalination plant, including modern and energy efficient technologies for water production (seawater reverse osmosis), higher standards and monitoring of its effluents’ water quality”. The technology employed is considered by the World Bank as the most energy efficient and best-in-class among existing desalination technology.

Thanks to the photovoltaic power plant integrated to the project, renewable energy is expected to account for at least 30% of the project’s electricity consumption within ten years, with a target of raising this figure to 55% by the end of the first quarter life of the project. The project is expected to substitute two local thermal desalination plants of lower capacity to be decommissioned in the coming years, improving local air quality and reducing greenhouse gas emissions.

Link to press release: https://pressroom-en.natixis.com/news/taweelah-iwp-obtains-the-first-ever-sustainable-loan-qualification-for-a-desalination-project-5fe3-8e037.html


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