Environmental Finance's Bond Awards 2023

Asset-backed/asset-based/covered green bond of the year: CAFFIL

Caisse Française de Financement Local (CAFFIL) is a financier of the French public sector at the local level.

In 2022, the covered bond subsidiary of the French public development bank SFIL (formerly Société de Financement Local) issued its green first bond under SFIL Group's newly established green, social, and sustainability bond framework.

The use of proceeds from the €750 million ($806 million) green bond will be used to finance a range of French local government investments, including clean local public transportation, green buildings and sustainable water management.

Olivier EudesThe transaction was well received, with an oversubscription rate of 2.1 and an allocation of 78% to investors with strong ESG commitments, according to CAFFIL.

The last green bond transaction issued by SFIL in 2021 financed 178 different green investments by French local authorities, resulting in an annual reduction in CO2 emissions of more than 50,000 tonnes.

On winning the award, Olivier Eudes, head of ALM and financial markets at SFIL, said: "Investments by local authorities play a key role in the green transition. Green and social bonds are a key element of our funding strategy. Looking ahead, we plan to issue at least 25% of our yearly funding under the green or social format."

CAFFIL won Asset-backed/asset-based/covered social bond of the year in last year's bond awards.

Deal highlights:

Issuer: CAFFIL
Size: €750 million ($806 million)
Maturity: 16 November 2027
Coupon: 3.125%
Use of proceeds: Green investments by the French local public sector
External reviewer: Sustainalytics
Lead managers: BNP Paribas, ING, La Banque Postale, LBBW, Natixis
Credit rating: Aaa, AA+, AAA (DBRS Morningstar)