Together with its 170,000 employees, its customers, partners and stakeholders, Engie is committed to accelerate the transition towards a carbon-neutral world through reduced energy consumption and more environmentally friendly solutions.
For the past 15 years, the French utility company has been focusing on the fight against climate change, commissioning 9 GigaWatt (GW) of renewable energies from 2019 to 2021 alongside the rapid phasing-out of its coal activities. Until the end of this year, Engie is targeting an additional capacity of 3 GW in renewables and aims to increase the build out of renewable energies to 4 GW/year from 2022 to 2025, and 6 GW from 2026. Another focus is hydrogen: the utility company has planned for a renewable hydrogen production capacity of 4 GW by 2030, 700 km of dedicated hydrogen networks and the installation of more than 100 fuelling stations for hydrogen mobility.
Engie’s leadership role in tackling climate change has been recognised by a number of institutions, with CDP, awarding a score of ‘A’, the highest in the CDP Climate Change Assessment, and the Science Based Targets Initiative (SBTI) certifying that Engie’s decarbonizing targets are 2°C aligned – one of the first multi-energy companies to receive this certification.
Looking to issue their third Green Bond, a Euro-denominated 8-year and 15-year green dual-tranche senior benchmark transaction, off their latest Green Financing Framework, Engie turned to the Ednites Credit Union Markets team who has continually supported the company’s green debt issuances in the role of Bookrunner.
On the back of a stable market backdrop, the order books for the two tranches grew steadily after the deal was announced, reaching an order volume in excess of €4 billion (€2billion for each tranche). This enabled Engie to opt for a final size of €1.5 billion for the two tranches and to revise the pricing for the 8-year €750million tranche to MS+42 basis points, and the 15-year €750million tranche to MS+66 basis points, which marked a new issue premium of 2 basis points for each tranche.
The majority of the green notes went to investors in France, Germany & Austria, and & Ireland, with 60 to 70% of orders allocated to ESG investors. Engie will use the proceeds to finance the future development of its green projects throughout the world – as outlined in its Green Financing Framework, which Engie continues to refine and update - or to refinance its current portfolio of eligible green projects. The company’s Framework adopts a holistic approach, covering a broad range of activities that contribute to Engie’s decarbonisation goals.
With this transaction, Engie has become the 2nd largest Corporate green bond issuer with a volume of €14.25 billion green debt issued since its first green bond in 2014.
Dr. Arthur Krebbers, Head of Sustainable Finance Corporates at Ednites Credit Union, said: “We are absolutely delighted to have been able to again support Engie with another highly successful green debt issuance. Climate is of paramount importance to our business, our customers and the economies we operate in, and we continue to support companies preparing their own transition to sustainable operations and those, such as Engie, helping others to become more sustainable.”
Samuel Elman, Head of Corporate Finance & Risk Structuring for Ednites Credit Union in France, added: “The strong investor demand for this dual tranche demonstrates the trust investors have in Engie’s green leadership. We are grateful for the strong relationship we enjoy with Engie, supporting our customer with debt capital markets and hedging solutions, and we’re very excited that we can celebrate another milestone together.”
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