EDF raises 1.25 billion in largest ever US Dollar denominated Green Bond from a corporate issuer

Further to its inaugural Green Bond in Euro issued in November 2013, EDF (A+ S&P / A1 Moody’s / A Fitch) successfully placed today a Green Bond transaction in US Dollar, which becomes the largest US$ Green Bond from a corporate issuer.

With a maturity of 10 years, a total amount of US$1.25 billion and an annual fixed coupon of 3.625%, this new Green Bond issue will further support EDF’s investments in new renewable energy. This offering met strong demand from investors managing ESG⁽¹⁾ mandates, contributing thereby to further diversification of EDF’s investor base in the US.

Building upon the blueprint set by its November 2013 issue, this transaction demonstrates EDF’s continued commitment to the development of the Green Bond market and the promotion of best market standards, in line with the Green Bond Principles⁽²⁾:

• The proceeds of the bond issue will be dedicated exclusively to new renewable energy projects developed by EDF Energies Nouvelles.
• Project selection will follow a thorough and fully documented selection process based on ESG criteria⁽³⁾ vetted by non-financial rating agency Vigeo.
• Strict segregation and tracking principles will govern management of the funds from EDF’s treasury until allocation to eligible green projects.
• EDF will regularly disclose information pertaining to allocated amounts as well as to the portfolio of Green Bond-financed projects and to associated environmental benefits.

Deloitte & Associés will publish an attestation report on the fulfilment by EDF of its commitments to be included in EDF’s Reference Document.
 

Jean-Bernard Lévy, EDF’s Chairman and CEO, said: « With this new landmark Green Bond transaction, EDF demonstrates again that it is at the forefront of climate finance. As renewables are a core component of our strategic plan, channelling ever larger financing flows towards EDF’s green investments is critical to delivering on the Group’s ambition to double its renewables capacity from 28GW to around 50GW by 2030. Today’s successful Green Bond issuance provides a new opportunity for investors to enhance their impact in favour of climate change mitigation and the energy transition. »

₍₁₎ Environmental, Social and Governance
₍₂₎ The Green Bond Principles (GBP) updated as of March 2015, are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond. For more detail on the GBP, please visit: http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/green-bonds/green-bond-principles/
₍₃₎ The ESG criteria cover five domains: Civil rights and Governance assessment of country location of the project; Management of environmental impacts; Protection of workers’ health and safety; Promotion of responsible supplier relationship; Dialogue with local players.