Agence France Trésor receives Euromoney/Global Capital’s award for Most Impressive Government Agency for its Green OAT again this year
On Tuesday, 4 September 2018 in Amsterdam, Agence France Trésor was recognised as the Most Impressive Government or Government Agency Green/SRI Bond Issuer at the Sustainable and Responsible Capital Markets Forum organised jointly by Euromoney Conferences and GlobalCapital. This is the second year in a row that AFT has brought home this award.
“This award recognises, once again, the importance that France places on financing the energy transition, citing the exemplary standard of quality that France has promoted since launching its Green OAT in January 2017. This distinction acknowledges France’s rank as the leading sovereign issuer on the green bond market”, stated Anthony Requin, Chief Executive of Agence France Trésor.
In response to investors' warm welcome of its first report on the use of proceeds and performance of the eligible green expenditure for the Green OAT in 2017, Agence France Trésor carried out a syndicated tap issue of the Green OAT 1.75% 25 June 2039 in June, issuing a further €4bn and bringing the total issuance amount to €14.8bn.
Background to the Green OAT
On 24 January 2017, Agence France Trésor launched the first sovereign green bond with a maturity of 22 years. The Green OAT 1.75% 25 June 2039 issuance amount was €7bn, making it the largest and longest-dated green benchmark bond ever issued. 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.
As is its practice for other OATs, France has tapped the green bond on four occasions in 2017 and 2018. France intends to tap the bond in response to market demand and up to the amount of eligible green expenditure, which stands at €8bn in 2018.
When the Green OAT was first issued in January 2017, the French government made other reporting commitments, in addition to the report on the use of proceeds and performance. The government will also report on the ex-post environmental impact of funded projects and expenditure. The Green Bond Evaluation Council, made up of independent scientists and economists of international repute, was inaugurated on 11 December 2017. Its task is to evaluate the environmental performance of the eligible green expenditure. The Council met in July 2018 and its first impact assessment report will be published by the end of 2018.
This green bond’s success has already been highlighted through several awards from market professionals: three in September 2017 from Euromoney/GlobalCapital,1three in December 2017 from the IFR (International Financing Review),2 and two in March 2018 from Climate Bonds Initiative, including the award for the largest issue of a sovereign green benchmark bond in 2017.
Agence France Trésor (AFT)
+33 1 40 04 15 50
1 Most Innovative Green/SRI Bond Deal, EMEA Green/SRI Bond Deal of the Year, and Most Impressive Government or Government Agency Green/SRI Bond Issuer.
2 Awards for Euro Bond, SSAR (sovereign, supranational, agency and regional) Bond and SRI (socially responsible investing) Bond.