Successful launch for Unibail-Rodamco’s sustainable bond supported by Vigeo’s methodology
On February 19th 2014, Unibail-Rodamco successfully launched its first Sustainable Bond. With an amount of €750 million, this environmental and social-based issue was between 3.4 times oversubscribed amongst institutional investors with a subscription of more than €2.5 billion in less than 2 hours.
The funds raised will be exclusively dedicated to financing ‘Green buildings’ (e.g. real estate assets which integrate the environment and users’ health and which have received a BREEAM Certificate Design Stage of at least “Very Good” and which have obtained a BREEAM In-Use Certificate in respect of the asset and building management).
The selected projects will have to comply in their contents and implementation with the eligibility criteria drawn up in partnership with Vigeo. They cover the main domains of Vigeo’s rating model, including the following principles and objectives:
- Unibail-Rodamco shall select the countries in which Eligible Assets are located based on an assessment of human rights and governance
- Eligible Assets should promote the development and the well-being of the communities in which they are located
- Unibail-Rodamco shall monitor the environmental impact of the Eligible Assets
- Unibail-Rodamco shall promote responsible relationships with tenants and visitors
- Unibail-Rodamco shall promote responsible relationships (including social and environmental aspects) with suppliers
In addition to transparency regarding targeted projects, Unibail-Rodamco committed itself to provide an annual report to investors on the real environmental and social impacts of these projects. Key performance indicators have been defined to evaluate the results of two categories of impacts:
- Environmental and energy performance impacts
- Impacts on territorial development and the well-being of tenants and visitors
On the 20th of November 2013, EDF successfully launched the first corporate Euro denominated Green Bond in. The funds raised (€1.4 billion) will be exclusively dedicated to financing future renewable energy projects led by EDF Energies Nouvelles, a subsidiary of EDF. For more information click here.
Previously, Vigeo partnered with the French local authority Ile-de-France to issue a first bond of 350 million euros on the 20th of March 2012. This issue aimed at financing sustainable development projects – developing renewable energy sources, retrofitting high-schools and building energy-efficient social housing. To have more details.
In the same manner, Vigeo supported Air Liquide on the 8th of October 2012 to launch a Euro Medium Term Notes, which totaled an amount of 500 million euros. The funds were directed toward the development of the group’s home health activities. To have more details.
More information is available on Unibail-Rodamco’s website
Europe, Green bonds