Crédit Agricole CIB issues a EUR 100 million Transition Bond subscribed by AXA
In the context of the AXA “Climate Impact Day” taking place today in Paris, Crédit Agricole CIB is pleased to announce the issuance of a EUR 100 million Transition Bond, as a Private Placement subscribed by AXA IM, on behalf of AXA Group. Listed on the Luxembourg Stock Exchange, the bond has a 10 year maturity and will pay a coupon of 0.55%.
An amount equivalent to the proceeds of the Transition Bond will be earmarked by Crédit Agricole CIB to a selection of loans made to projects in carbon intensive sectors which contribute to the transition to a low carbon economy, such as LNG-powered ships, investments in energy efficient industries as well as gas power assets in countries where power generation currently relies on coal. The underlying projects are estimated to abate carbon emissions by a total amount of 26,500 tCO2 annually.
This first Transition Bond issued by a commercial bank will allow AXA Group to contribute to the financing of climate transition assets, while benefiting from Crédit Agricole credit strengths and global origination network. Following the call for action from AXA IM in June, it also represents a significant milestone in the development of Transition Bonds, a sustainable finance tool designed to accompany the transition to a low carbon economy for greenhouse gas intensive sectors.
Ever since market inception 10 years ago, Crédit Agricole has been a major issuer, underwriter and investor of Green Bonds. It remains highly committed to the growth of the Sustainable Debt Finance market in general, at the service of its clients. This Transition Bond issuance, in cooperation with AXA Group, is a further step in that strategy.
Didier Gaffinel, Head of Global Coverage & Investment Banking at Crédit Agricole CIB said: “Starting in 2009, Crédit Agricole has made significant progress to identify and promote green and Sustainable financings within its “distribute to originate” business model. We are proud that AXA Group recognizes this expertise and partners with us to finance the environmental transition projects of some of our key clients.”
Pascal Christory, AXA Group Chief Investment Officer, adds: “AXA is keen to source sustainable and innovative investment opportunities. We are proud to join forces with Crédit Agricole CIB for the first issuance of a transition bond. Thanks to this new type of bonds, we aim to actively support companies that are transforming their business model and driving the transition to a lower carbon and resilient economy.”