Sustainability bond of the year - local authority/municipality - Walloon Region

Channels: Green Bonds

In April 2019, the Walloon Region of Belgium issued its inaugural, €1 billion ($1.1 billion) sustainability bond.
It attracted more than €3.5 billion of demand from more than 200 investors.

Deal highlights:

Issuer: Walloon Region
Date of issue: April 2019
Size: €1 billion
Maturity: 2026 and 2034 (two €500 million tranches)
Coupon: 0.25% and 1.25%, respectively.
Use of proceeds: The proceeds will finance or refinance green and social eligible expenditures within Walloon Region' sustainability bond framework, including renewable energy, sustainable mobility, education and employment promotion, affordable housing, and access to essential public services.
External review: Vigeo Eiris
Lead managers: Belfius,BNP Paribas, HSBC, Landesbank Baden-Wurttemberg, Natixis.
Credit rating: Moody's A2
Other highlights/notable features: The inaugural bond had more than €3.5 billion of combined demand from more than 200 single orders

Well-known on the debt market for its private placements and rated A2 by Moody's, Walloon Region – a French-speaking region of Belgium – is one of the three Regional Authorities composing the Belgian Federal State.

Based on feedback collected during a deal-related roadshow targeting sustainability-focused investors in Europe, Wallonia decided to issue two tranches of the bond – a seven-year and 15-year tranche, each raising €500 million.

The proceeds will finance or refinance green and social eligible expenditures within Walloon Region' sustainability bond framework, including renewable energy, sustainable mobility, education and employment promotion, affordable housing, and access to essential public services.

Vigeo Eiris said the proceeds were likely to help meet 13 of the 17 UN Sustainable Development Goals.