27.11.2019

Crédit Agricole CIB issues a EUR 100 million Transition Bond subscribed by AXA

In the context of the AXA “Climate Impact Day” taking place today in Paris, Crédit Agricole CIB is pleased to announce the issuance of a EUR 100 million Transition Bond, as a Private Placement subscribed by AXA IM, on behalf of AXA Group. Listed on the Luxembourg Stock Exchange, the bond has a 10 year maturity and will pay a coupon of 0.55%.

An amount equivalent to the proceeds of the Transition Bond will be earmarked by Crédit Agricole CIB to a selection of loans made to projects in carbon intensive sectors which contribute to the transition to a low carbon economy, such as LNG-powered ships, investments in energy efficient industries as well as gas power assets in countries where power generation currently relies on coal. The underlying projects are estimated to abate carbon emissions by a total amount of 26,500 tCO2 annually.

This first Transition Bond issued by a commercial bank will allow AXA Group to contribute to the financing of climate transition assets, while benefiting from Crédit Agricole credit strengths and global origination network. Following the call for action from AXA IM in June(1), it also represents a significant milestone in the development of Transition Bonds, a sustainable finance tool designed to accompany the transition to a low carbon economy for greenhouse gas intensive sectors.

Ever since market inception 10 years ago, Crédit Agricole has been a major issuer, underwriter and investor of Green Bonds. It remains highly committed to the growth of the Sustainable Debt Finance market in general, at the service of its clients. This Transition Bond issuance, in cooperation with AXA Group, is a further step in that strategy.

Didier Gaffinel, Head of Global Coverage & Investment Banking at Crédit Agricole CIB said: “starting in 2009, Crédit Agricole has made significant progress to identify and promote green and Sustainable financings within its “distribute to originate” business model. We are proud that AXA Group recognizes this expertise and partners with us to finance the environmental transition projects of some of our key clients.”    

Pascal Christory, AXA Group Chief Investment Officer, add: “AXA is keen to source sustainable and innovative investment opportunities. We are proud to join forces with Crédit Agricole CIB for the first issuance of a transition bond. Thanks to this new type of bonds, we aim to actively support companies that are transforming their business model and driving the transition to a lower carbon and resilient economy.

 

(1) Link to the press release

Crédit Agricole CIB is the corporate and investment banking arm of Credit Agricole Group, the 12th largest banking group worldwide in terms of tier 1 capital (The Banker, July 2019). Nearly 8,000 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.

For more information, please visit www.ca-cib.com