29.11.2018

Climate finance : Crédit Agricole confirms its ranking as a world leader in green bonds with an inaugural issue of €1 billion to finance its energy transition commitments

Crédit Agricole S.A. successfully completed today its first Green Bond with a benchmark issue of €1 billion. The issue is a 5 year Senior Preferred bond. Structured by Crédit Agricole CIB, this issue met a lot of interest from investors, as reflected by the depth and quality of the order book. In geographical terms, the bulk of interest came from France, Germany, the United Kingdom and the Netherlands. The proceeds will be used to fund in all our territories energy and ecological transition projects of Crédit Agricole's financing entities: the Crédit Agricole Regional Banks, Crédit Agricole CIB, LCL and UNIFERGIE.

 

A first for Crédit Agricole Group which is already a leader in the Green Bonds market

 

This inaugural issue will be used to refinance the green assets booked by Crédit Agricole Regional Banks, Crédit Agricole CIB, LCL and UNIFERGIE in the following sectors:

  1. Renewable energies
  2. Green buildings
  3. Energy efficiency
  4. Green transport
  5. Waste and water management
  6. Sustainable farming and forestry management 

According to Philippe Brassac, Chief Executive Officer of Crédit Agricole S.A.: “The economy and finance can and should become powerful allies in order to achieve the objective of carbon neutrality by 2050 as set out in France’s Climate Plan. This green bond issuance will enable us to forge ahead with our commitments. The size, nature and granularity of the bond is likely to make it a benchmark operation in the banking landscape.”

The Group is a pioneer and a lead player in the Green Bonds market:

  • As an arranger, Crédit Agricole CIB is not only a pioneer but is also ranked the number one player on the global green bonds market.
  • As an investor, Crédit Agricole Group has made stringent commitments to invest directly in Green Bonds, through Crédit Agricole S.A.'s treasury activity or through Amundi.
  • As an issuer, with this first benchmark issue of €1 billion by Crédit Agricole S.A. Crédit Agricole aims to become a regular issuer on this market.

Climate finance to speed up the energy transition

Green Bonds are financial instruments designed to help combat climate change in response to demand from socially responsible investors. They are also a means for organisations to engage in virtuous transformation through the financing and hence identification of their green assets.

As the leading provider of financing for the French economy, Crédit Agricole plays a key role in supporting the energy transition.

Thanks to its leading positions, sector expertise, financial solidity and size, the Group has the capacity to provide proactive, sustainable and powerful support for the financing of this new economy. Crédit Agricole's strategy seeks to fulfil three objectives:

1. Support all its customers in the transition towards a low-carbon economy, aligned with the 2°C trajectory set out in the Paris Agreement;
2. Broadly incorporate environmental, social and governance (ESG) criteria into the financing and investments proposed by it in order to ensure the consistency of their economic, social and environmental impact;
3. Invest in and promote financing for large-scale renewable energy projects

Philippe BRASSAC

Chief Executive Officer of Crédit Agricole S.A., member of the Executive Committee of Crédit Agricole S.A. Philippe Brassac was appointed Chief Executive Officer of Crédit Agricole S.A. on 20 May 2015, member of the Executive Committee of Crédit Agricole S.A. A graduate of the ...