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Company & Organisation News - 22/09/2014

Success for the first AFD’s “climate bond” with Vigeo’s opinion

The French Agency for Development (AFD) has launched ‘Climate Bonds’ for the first time of its history to finance and support development projects dedicated to fight climate change. This bond comes with a second party opinion, as an independent third-party, on the integration in the AFD processes of action principles and objectives for climate change prevention.

Logo AFD, Agence Française de Développement

This opinion includes:

  • A CSR performance analysis for AFD as an issuer, with an evaluation of its engagements and processes in terms of governance, in the social and environmental domains and a review of its risks’ management on these criteria.
  • An identification of the projects’ benefits linked to climate and an analysis on the integration of ESG criteria in the funding process
  • An evaluation of the AFD’s engagements in terms of reporting, funds allocation, climate benefits and on the projects’ CSR governance.

This bond will contribute to promote projects with a direct impact on the reduction of greenhouse gases, supported by a systematic evaluation of carbon footprint of projects financed by the agency. AFD launched an issue of 1 million euros, over a time-frame of 10 years with a coupon of 1.375%. This launch with an environmental responsibility criteria is the first one realized by a French public agency. It’s a turning point in the conception of financial instruments in favor of the transition towards a low carbon economy.

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Keywords : France, Green bonds