GDF SUEZ opens trading on Euronext's market with Green Bond

PUBLISHED: 14 May 2014 @ 22:11 | Comments (0) |

BOND ISSUE SETS €2.5 BILLION WORLD RECORD

Euronext, the wholly-owned subsidiary of IntercontinentalExchange (NYSE:ICE) today announces the successful issue of GDF SUEZ’s €2.5 billion Green Bond on Monday, 12 May 2014. The issue represents nearly one-quarter of all corporate green bonds issued worldwide in 2013.

The bond has two tranches: a 6-year tranche of €1,200 million with a 1.375% annual coupon, and a 12-year tranche of €1,300 million with a 2.375% annual coupon. The average coupon amounts to a low 1.895% for 9.1 years average duration.

Strong demand led to an orderbook of over €7.5 billion, or three times the amount initially offered. The issue was extremely popular with socially responsible investors, i.e., investors integrating extra-financial ethical, social and environmental factors into their management and decisions, who subscribed 64% of the total. Sixty percent of orders came from Europe, including Germany (25%), France (20%) and the United Kingdom (15%), confirming Europe’s key role in responsible financing.

Funds raised will be used to develop projects focusing on renewable energy and enhancing energy efficiency. Eligible projects must meet a selection of environmental and social criteria defined by GDF SUEZ in collaboration with Vigéo, Europe’s leading rating agency for ESG performance (environmental, social and governance).

Anthony Attia, CEO of Euronext Paris, said: “Euronext is delighted with the success of GDF SUEZ’s bond issue aimed at financing future sustainable development projects. We’ve observed increased interest in this financing option which is both flexible and efficient. It also illustrates the key role played by the stock exchange in financing the economy—a role enhanced by the wide range of solutions that we offer companies and institutions.”

“We are vey proud to have worked with GDF SUEZ in preparing their Green Bond, an issue that attracted many socially responsible investors,” added Marc Lefèvre, Head of European Business Development and Client Coverage at Euronext. “This is the largest bond issue ever dedicated to sustainable development—a world record that confirms the rebound of markets we’ve observed since autumn 2013.”

GDF SUEZ Chairman and CEO Gérard Mestrallet said: “This unusually large issue will serve the strategic priorities and sustainable growth strategy of GDF SUEZ in renewables and energy efficiency in Europe and throughout the world. Projects financed by this bond issue will enable our Group to address the great energy and environmental challenges we face: meeting energy needs, ensuring security of supply, combating climate change, and optimizing natural resources.”

To celebrate this record-breaking issue, GDF SUEZ Executive Vice-President and CFO Isabelle Kocher, accompanied by the group’s financial and legal advisers and by the Euronext Listings team, rang the bell opening financial markets.

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