BNP Paribas today announced it has priced its inaugural EUR 500 million Green Bond. The transaction attracted strong demand from investors allowing a pricing inside of BNP Paribas ordinary senior debt curve.
BNP Paribas has a long standing commitment to sustainability. A year ago, it committed to supporting the development of renewable energies by more than doubling its exposure to this sector from €7.2bn in 2015 to €15bn in 2020, and continuing at the same time to promote Green Bonds to institutional investors, a market in which BNP Paribas aims to rank among the top three global players for euro-denominated issues by 2018. The Group has also decided to strengthen its policies for the management of carbon risk. This is in line with the energy transition policy announced by the Group a year ago in order to comply with the international consensus aiming to restrict global warming to a 2ºC increase over pre-industrial levels.
Ahead of the launch of this green bond, BNP Paribas has defined a Green Bond Framework in line with the Green Bond Principles published by the International Capital Market Association.
The net proceeds of the issue of the Notes will be allocated to the financing and/or refinancing, of Eligible Green Assets in the following Eligible Sectors:
Mass and Public transportation
Water Management & Water Treatment
Michel Konczaty, Deputy COO, BNP Paribas said:
“The launch of our inaugural green bond today amplifies our commitment to sustainability and to supporting projects which have a positive impact. We look forward to working together in continuing to deliver market based sustainable solutions which help us and our clients meet social and environmental challenges.”
BNP Paribas plays an active role in the development of the Green Bond market having lead-managed more than EUR 5.8 bn in Green Bonds to date, including over EUR 1 bn in equity-linked.
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 75 countries, with more than 189,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
Fully integrated in the BNP Paribas Group, BNP Paribas Corporate and Institutional Banking (CIB) is a leading provider of solutions to two client franchises: corporates and institutionals, and operates across EMEA (Europe Middle East Africa), APAC (Asia Pacific) and the Americas. The bank is a global leader in Debt Capital Markets and Derivatives. It is a top European house in Equity Capital Markets and it has leading franchises in Specialized Financing. In Securities Services, it is a top five House worldwide. BNP Paribas CIB strives to service the global economy by providing solutions to its clients in financing (ECM, DCM, specialized financing), flow banking (trade finance and cash management), financial advisory (M&A, project finance), global markets (interest rates, credit, foreign exchange, equity derivatives), risk management, and securities services.