Crédit Agricole CIB arranges the first green ABCP note financing electric vehicles in client auto retail loan and lease pools

Crédit Agricole CIB announced today its first issuance of a green Asset-Backed Commercial Paper (ABCP) note, raising USD 25 million.

ABCPCrédit Agricole CIB understands this to be the industry's first green ABCP note financing electric vehicles (EVs) in client auto loan and lease pools. The note was issued by La Fayette Asset Securitisation LLC (a multi-seller ABCP program providing secured financing for bank clients, sponsored by Crédit Agricole CIB) and will be the first of numerous expected green note issuances for the Crédit Agricole CIB ABCP programs (Atlantic, La Fayette, and LMA).

Arnaud d’Intignano, Global Head of Financing & Funding Solutions said "We are very excited to structure the first of many green ABCP issuances financing underlying EV loans and leases in our ABCP programs placed with a leading environmental, social and governance (ESG) investor, while building on the bank’s leadership position in green bond distribution and ABS/ABCP securitisation underwriting and financing.".

Michael Guarda, Regional Head of Financing & Funding Solutions Americas, added "This initiative is the result of robust collaboration among internal teams dedicated to finding innovative green financing solutions. We look forward to developing further green structured financing opportunities for ESG investors within our ABCP and ABS platforms by expanding the flow of EV and hybrid electric vehicle (HEV) financing, while introducing new eligible green asset categories over time in alignment with the Green Bond Framework.”.

With very specific green asset ABCP eligibility standards and green “Use of Proceeds” criteria tailored to securitisation transactions, along with the merging of green ABCP financing criteria into the Crédit Agricole Group’s Green Bond Framework (Green Bond Framework) and periodic update of the independent Second Party Opinion, there will be a high-level of assurance that the eligible green ABCP assets are in alignment with the Green Bond Framework and the Green Bond Principles. Further, the green ABCP assets will conform with the Crédit Agricole Corporate Social Responsibility (CSR) policy and contribute to the United Nations Sustainable Development Goals (SDGs) as outlined by the Green Bond Framework.

Tanguy Claquin, Global Head of Sustainable Banking, said, "This green ABCP note issuance structure is a reflection of the Group’s long-term commitment to the green bond markets, with the view to provide sustainable finance solutions to our clients and green investments opportunities to ESG investors. The bank is applying significant resources to developing green financing solutions with environmental impact globally, and has maintained a position at the top of the green bond underwriting league tables for many years. The green ABCP financing is a terrific progression showing how climate change is now embedded in all our product offerings.”.