GDF Suez successfully launches the most important sustainable green bond ever made, based on the Vigeo methodology
On May 12th 2014, GDF Suez has successfully launched the most important bond ever made by a company.
Issued for an amount of 2,5 billion euros, this bond based on social responsibility criteria has two tranches (6 and 12 years) and has been oversubscribed 3 times amongst investors, with about 7,5 billion euros subscribed in less than 3 hours. This strong request has come from SRI investors integrating ESG criteria in their management, to which 64% of the amount of the bond was allocated, and foreign investors, 60% of the amount were allocated in Europe.
The raised funds have the objective of contributing to the energy transition: they will be exclusively dedicated to financing renewable energy and energy efficiency projects.
In addition to commitments related to the respect of Human rights for all GDF Suez activities, projects eligible for financing will have to comply with 10 criteria that define its CSR in their objective and in their management, established with Vigeo, and that cover major domains of the Vigeo Rating framework, especially of the following principles:
- Environmental protection: fight against climate change, environmental management, and biodiversity protection.
- Societal commitment: contribution to local development and to the well-being of communities
- Ethical behavior and market : promotion of responsible practices through supply chains and lasting relationships with suppliers
- Human resources : working conditions and relationships
- Project governance : internal assurance of a positive recommendation in terms of ESG risks management
GDF Suez has also committed to reporting to investors and verifying its commitments by a third party:
- GDF Suez audit report on the sustainable green bonds allocations
- Reporting on the green projects financed with products linked to green bonds launches and environmental indicators
This issue is the 6th green sustainable bond launch based on the Vigeo methodology, after Air Liquide, EDF, the Ile de France Region, Unibail-Rodamco and Iberdrola.
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France, Green bonds