28 March 2018
The City of Paris demonstrated its commitment to sustainable development by returning to the sustainability bond market in 2017.
Issuer: City of Paris
Deal Type: Sustainability bond
Issue rating: AA (S&P/ Fitch)
Lead managers: Crédit Agricole CIB, HSBC, Société Générale CIB
Size: €320 million
Tenor: 17 years
Date of Issue: November 2017
Use of proceeds: Clean transportation, energy efficiency, renewable energy, adaptation to climate change, access to essential services for target population, quality of life improvements in unprivileged area, social solidarity economy, social and affordable housing.
External assessment: - Vigeo Eiris on the framework
External verification of the tracking of the proceeds by the Public Accountant and the Prefet (a local government official).
The bond, which raised €320 million, will finance projects such as improving the quality of life in deprived areas, helping communities gain access to essential services, lowering energy consumption, clean transportation, such as a tramway, and renewable energy.
It had issued a climate bond in 2015, but aware of the expansion of the market for sustainability-themed products, the City of Paris redrafted its framework in order to broaden the spectrum to include social and sustainable projects.
By doing so, the City of Paris said its bond is in line with the following UN Sustainable Development Goals:
-SDG 1: No Poverty
-SDG 4: Quality Education
-SDG 7: Affordable and Clean Energy
-SDG 8: Decent Work and Economic Growth
-SDG 11: Sustainable Cities and Communities
-SDG 13: Climate Action
The investor judges were impressed by the annual impact reporting, the external verification of the tracking of the bond proceeds by the Public Accountant and the Prefet (a local government official).
One of the judges described the issue as "solid".
The orderbook swelled to €1.3 billion, which was a record for the issuer, with 58% of the distribution being placed with foreign investors.