Largest Green Bond Ever to Be Structured With Crédit Agricole and GDF Suez

Crédit Agricole CIB Works with GDF Suez to Structure and Issue the Largest Green Bond Ever

GDF Suez has issued a €2.5 billion green bond, the largest-ever bond of this type.

The bond has two tranches: a six-year, €1.2-billion tranche with a 1.375% coupon and a 12-year, €1.3-billion tranche with a 2.375% coupon. The issue was a big hit with institutional investors, particularly in the SRI (socially responsible investment) community.

Crédit Agricole CIB acted as sole advisor on structuring the transaction and shared global coordination with Citi. Thirteen other banks participated in the deal as joint bookrunners.
The funds raised in the bond issue will be used to finance GDF Suez Group projects in renewable energies, such as wind and hydropower, and energy efficiency, including "smart metering" remote-control systems and heating systems that use otherwise wasted heat sources.

Magali Bilocq, Sustainable Banking : "Our expertise as the leader in the green bond market helped us make this transaction a success for GDF Suez. This is a major step in financing the energy transition".
Franck Hergault, Corporate Bond Origination : "This record-setting transaction was three times oversubscribed, showing investors' appetite for this fast-growing market where Crédit Agricole CIB has a leading position".
Laurent Friedli, Advisory Banker to GDF Suez: "We are proud to assist GDF Suez as sole advisor in structuring the green bond. GDF Suez is a major customer of our bank. The deal illustrates the quality and closeness of our relationship with the company."

To qualify for green bond financing, projects must meet 10 environmental and social criteria in five areas: environmental protection, contribution to development and well-being of local communities, compliance with ethical principles and fairness to suppliers and sub-contractors, human resources management and the quality of governance in the projects financed.

GDF Suez set these criteria in collaboration with extra-financial rating agency ESG Vigeo. They appear on the GDF Suez website. Allocation of funds to the projects will be specifically traceable and verified by a GDF Suez statutory auditor.

GDF Suez Group is conscious of the importance of its role in energy transition. Its environmental goals are ambitious: increase installed renewable energy capacity by 50% between 2009 and 2015, achieve 40% growth in the European energy efficiency business by 2018, and reduce specific CO2 emissions 10% by 2020.

Source: Credit Agricole

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