Crédit Agricole CIB innovates in the global sustainable capital market with a market first: Solidarity-based Green Bond
Crédit Agricole CIB Taipei branch has issued an innovative solidarity-based green bond. The 7-year TWD1.7 billion (equivalent to EUR50 million) bond offering is the first-ever solidarity-based bond in the global sustainable market where investors, joint-lead managers and the issuer team up to financially contribute to an environmentally and socially-friendly project.
This green bond offering has been issued under Crédit Agricole Group Green Bond Framework and also benefits from the green bonds accreditation from the Taipei Exchange. The proceeds of this offering will finance Crédit Agricole CIB Taipei branch’s green loan portfolio – and specifically its exposure to renewable energy such as offshore wind farm projects. Additionally, upon bond issuance, a solidarity-based feature in the form of a monetary contribution will be given to Plastic Odyssey, a global project supported by Crédit Agricole Group and Grameen Crédit Agricole Foundation since 2018, which aims to pro-actively reduce plastic pollution in oceans.
The bond issuance combined two separate but correlated concepts to address major sustainability challenges – supporting the growth of renewable energy in Taiwan through bond proceeds, and sustaining the efforts of mitigating plastic pollution in oceans globally through a separate solidarity-based contribution to Plastic Odyssey. The unique solidarity-based feature comes from a joint effort and partnership among bond investors, joint-lead managers, and Crédit Agricole CIB Taipei branch. After the issuance of the bond, a monetary contribution calculated as the aggregate of (1) the transaction’s savings thanks to investors’ concessions, (2) the issuer’s savings due to joint lead managers’ concessions in bonds offering, and (3) additional concessions provided by Crédit Agricole CIB Taipei branch, will be provided to Plastic Odyssey.
Crédit Agricole CIB Taipei branch received support from the joint-lead managers of this deal, namely Capital Securities, E. SUN Commercial Bank, Fubon Securities and Yuanta Securities for this innovative structure.
Benjamin Lamberg, Chief Executive Officer of Crédit Agricole CIB Taipei Branch, commented “This pioneering deal is opening a new chapter in the sustainable bond market. Our aim is to facilitate the energy transition through the use of proceeds of this green bond which finance our local renewable energy portfolio, and to actively support projects such as Plastic Odyssey in their drive to reduce plastic pollution in the ocean. The philosophy behind this ‘solidarity-based feature’ was to join efforts and bring together investors, joint-lead managers, and Crédit Agricole CIB in their solidarity-related contribution.”
Tanguy Claquin, Global Head of Sustainable Banking of Crédit Agricole CIB, added “Crédit Agricole CIB is a pioneer in the green finance area. It is also taking action to support the biodiversity protection and a prudent management of the oceans, a vital global resource critical to a sustainable future. Plastic Odyssey leads a great project which develops local recycling economies to generate jobs, creates low-tech recycling technologies for waste treatment and disseminates knowledge to empower citizens. We are pleased to support this meaningful project and will continue to actively promote solidarity based finance and products across industries and capital market.”
Simon Bernard, Chief Executive Officer of Plastic Odyssey, commented “Plastic Odyssey is paving the way for a global change in terms of plastic pollution and social entrepreneurship. In this journey, we are strongly supported by our official sponsor Crédit Agricole and we are very grateful to Crédit Agricole CIB Taipei branch for this additional support which is a testament to our shared ambition for the environment.”
Crédit Agricole CIB is the corporate and investment banking arm of Crédit Agricole Group, the 12th largest banking group worldwide in terms of tier 1 capital (The Banker, July 2020). Nearly 8,400 employees across Europe, the Americas, Asia-Pacific, the Middle East and Africa support the Bank's clients, meeting their financial needs throughout the world. Crédit Agricole CIB offers its large corporate and institutional clients a range of products and services in capital markets activities, investment banking, structured finance, commercial banking and international trade. The Bank is a pioneer in the area of climate finance, and is currently a market leader in this segment with a complete offer for all its clients.
For many years Crédit Agricole CIB has been committed to sustainable development. The Bank was the first French bank to sign the Equator Principles in 2003. It has also been a pioneer in Green Bond markets with the arrangement of public transactions from 2012 for a wide array of issuers (supranational banks, corporates, local authorities, banks) and was one of the co-drafter of Green Bond Principles and of the Social Bond Guidance. Relying on the expertise of a dedicated sustainable banking team and on the strong support of all bankers, Crédit Agricole CIB is one of the most active banks in the Green bonds market.
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