To support its ambitious development strategy in renewable energies and energy efficiency, ENGIE has issued its second green bond of Euro 1.5 billion. The bond has two tranches – a seven-year tranche of Euro 700 million with a 0.875 per cent annual coupon, and an 11-year tranche of Euro 800 million with a 1.5 per cent annual coupon. The average coupon amounts to 1.2 per cent for an average duration of 9.1 years. These two tranches will enable the group to reduce its average cost of debt and extend its duration. The proceeds of the bond will be used to finance renewable energy projects including wind and solar farms, hydroelectric plants, energy efficiency projects and natural resources preservation projects.
The bond issue proceeds will be allocated according to a specific traceability procedure that will be verified by an external audit firm. In order to be eligible for financing, projects must meet a number of environmental and social criteria in eight areas, which are the fight against climate change and the conservation of natural resources, environmental management, biodiversity, dialogue with stakeholders, business ethics, human rights, responsible procurement, and health and safety.
