Second responsible green bond issued for DC Water and EDF, supported by Vigeo’s opinion
For the second time within two years, DC Water and EDF issued a large-scale responsible green bond.
Second Green Bond for DC Water
On October 6th, 2015, and after its ” century bond ” issued in 2014, DC Water successfully issued its second green bond,. This Green Bond was suppored by Vigeo, an independent third-party expert, as ” the Second Party Opinion “, who evaluated the level of integration of the CSR factors in the design and the deployment of DC Water’s projects.
With an amount of 100 million US dollars, this second emission by a municipality with a 10 year maturity was signed almost 1.8 times by investors (coupon: 4.81 %). It joins the framework of a global 350 million dollar emission, distributed in two bonds. The coupon and the take-up apply to the global emission and not only in Green Bond.
This new operation aims at financing the project ” DC clean Rivers Project “. This 2.6 billion dollar project consists in the construction of infrastructures, in particular tunnels and pumping systems, to manage the overflowing of waste water and rainwaters and to transport them to the processing plant DC WATER’S BLUE PLAINS. It contributes to the improvement of the quality of the water and adds to a dynamic of anticipation and adaptation to climate change.
For this new emission, DC Water made the commitment to have its ESG reporting verified by an external auditor.
Second Green Bond for EDF
On October 8th, 2015, EDF also successfully realized, a green bond of 1,25 billion US dollars, focused on CSR criteria. This Bond falls within the framework of a global 4,75 billion dollar emission in 10 years with a 3,625 % rate.
All the eligible projects will be selected according to CSR eligibility criteria approved by Vigeo. The raised funds are invested in a portfolio dedicated to EDF financial assets until their allocation to the selected projects. The list of the financed projects will be annually communicated and submitted to an independent check led by auditors.
Role of Vigeo
For these two emissions, the role of Vigeo was to supply, supported by its reference rating table, an opinion on the degree of integration, by these two issuers, of their principles and objectives defining their social responsibility regarding human rights, protection of the environment, business ethics, the governance and the community involvement. The opinion of Vigeo also concerns the green character of the emission, the process of selection of its projects and the availability of the information the issuer makes as a commitment to assure to report the implementation and impacts of the projects.
Green bonds, World