Crédit Agricole CIB supports Europcar Mobility Group in its first sustainability-linked securitisation
Crédit Agricole CIB is pleased to announce the transformation of Europcar Mobility Group’s €1.7bn fleet financing securitisation programme into the largest ever sustainability-linked securitisation programme on assets.
Europcar Mobility Group, as a major player in the mobility market has the ambition to be part of the solution towards a low carbon economy. This ambition has been reinforced with the launch of its “One Sustainable Fleet Program” end of 2019, targeting an increase in the proportion of “green” vehicles in its fleet, and with the implementation of a comprehensive Carbon Reduction Plan from early 2021.
Under the terms of the securitisation, an interest step-up or step-down mechanism will be applied depending on the achievement of a sustainability performance KPI covering the percentage of green vehicles (less than 50 g CO2/km) within its car and van fleet. The performance of the KPI will be reported annually from 2022 and independently verified.
Crédit Agricole CIB acted as sole Lead Arranger and ESG advisor on this transaction. The transaction confirms its leadership and innovation mindset in two of our excellence pillars: securitisation and sustainable finance, at the service of its client strategy.
Caroline Parot, CEO, Europcar Mobility Group: “Through the program amendments, Europcar Mobility Group consolidates its move to implement a comprehensive sustainable finance strategy. This sustainability-linked securitisation, together with the bond issuance we have just completed, reflects the choice to act directly on the “C02” profile of our fleet, where we can have a significant impact. We are committed to reducing our carbon footprint year on year, while positioning and promoting our mobility services as real alternatives to car ownership, thereby allowing the reduction of the number of cars on the road. This is how we see our contribution to the necessary transition to a low carbon world”.
Edith Lusson, Managing Director – Securitisation at Crédit Agricole CIB: “We were delighted to arrange this innovative sustainability-linked feature to the Europcar transaction and to reach approval of all 9 banks in the pool. We are convinced it will pave the way for similar transactions in the mobility sector, further contributing to sustainable and low carbon fleet financing activities.”
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 2021). Nearly 8,600 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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