Presentation
On 24 January 2017, Agence France Trésor launched the first French sovereign green bond, the Green OAT 1.75% 25 June 2039 for an issuance amount of €7bn.By becoming the first country in the world to issue a sovereign green benchmark bond, France confirmed its role as a driving force for the implementation of the goals of the December 2015 Paris Climate Agreement.
France's Green OAT funds central government budget expenditure and expenditure under the “Invest for the Future” programme to fight climate change, adapt to climate change, protect biodiversity and fight pollution.
The funds raised are handled like funds from a conventional OAT and managed in compliance with the general budget rule. However, they are matched to an equivalent amount of Eligible Green Expenditure and the aggregate of such expenditure in a given year sets the limit for Green OAT issuance.
Green OAT are managed like those of a conventional OAT, but the allocations to Eligible Green Expenditure are tracked and reported.
AFT has regularly taped the Green OAT since the initial issuance to maintain its liquidity, as it does for conventional benchmark OATs. Consequently, the outstanding amount of the Green OAT has been increased by successive tap issues. The proceeds from tap issues are also matched to Eligible Green Expenditure, as the cumulative amount of such expenditure has rised over the years (see Green OAT fact sheet).
France provides several types of report to investors: an annual report on allocation and performance indicators and a report on ex post impacts at an appropriate frequency. The ex-post impact reporting is reviewed by an independent Council.
Download the first Green OAT allocation and performance report overview
Allocation and performance report
Additional background:
Green bonds fund projects that have a positive environmental impact. They differ from conventional bonds in that they carry precise and specific reporting requirements on the investments they fund and their “green” credentials, although the financial risk is the same for investors.
In line with the objectives set by President Hollande at the Fourth Environmental Conference in April 2016, and with the press release published in September 2016 by the Minister for the Environment, Energy and Oceans, on one hand, and the Minister for the Economy and Finance, on the other, Agence France Trésor (AFT) announced on Tuesday 3 January 2017 that it is about to start roadshows leading up to the first sovereign green bond being issued in 2017, under the auspices of Ministers Ségolène Royal and Michel Sapin.
19 July 2019: Release of 2018 Green OAT allocation and performance report
24 January 2019: Green OAT: Announcement of the amount of Eligible Green Expenditure for 2019
29 November 2018: Green OAT: first impact report on the energy transition tax credit issued
06 September 2018 : Agence France Trésor rewarded again by Euromoney/Global Capital
26 June 2018 : Results: Syndicated tap issue of the Green OAT 1.75% 25 June 2039
25 June 2018 : Announcement: Syndicated tap issue of the Green OAT 1.75% 25 June 2039
20 June 2018 : Release of 2017 Green OAT allocation and output report
21 March 2018 : France's Green OAT wins award from Climate Bonds Initiative
24 January 2018: Green OAT: Announcement of the amount of Eligible Green Expenditure for 2018
19 December 2017: IFR offers a triple crown to France’s Green OAT
23 January 2017: Creation of the Green OAT
24 January 2017: Launch of the Green OAT 1.75% 25 June 2039
Learn more about the green OAT
(video only available in French)