Bercy welcomed the success of the operation. The amount borrowed will finance investments in favour of the energy transition and eco-friendly.
C‘is a borrowing unprecedented and historic. France has opened the way Tuesday to the establishment of a real market borrowings of State for the environment, by collecting for the first 7 billion euros through an issuance of the”green bond” for a period of 22 years and at a fixed rate to 1.75%, a rate comparable with borrowing “classic” of the same duration.
These debt securities are negotiable on the capital markets, to finance investments in favour of the energy transition and ecological. The subscription was reserved to institutional investors (banks, insurers, pension funds, etc.). This initiative was announced by president François Hollande in April 2016.
France, ” a great State green “
According to the bank Credit Agricole-CIB, which was part of the institutions in charge of placing this loan giant with investors, it is an event “history” for the bond market, green, or “green bonds“, due to both its size and its duration. “The result of the operation shows that France is recognized as a great State green, with a credible and robust system to implement the Paris Agreement,” said in a press release Ségolène Royal, minister of the Environment.
This demonstrates that we “may want to finance of green spending in economically, fiscally (…) everything is best”, without additional costs compared to borrowing traditional, congratulated for its part in front of the press, Michel Sapin, minister of Economy.
Bercy could renew the experience
France is not, strictly speaking, the first country to launch in the loans to be “green”. In December, Poland had opened the entrance in game of the States on this market with an issuance of an amount more modest than 750 million euros. By its size and its maturity, “the transaction marks the entry of the Member on the market, green bond, it is the one of France”, stressed at a press briefing Anthony Shark, general director of Agence France Trésor, the agence de Bercy in charge of managing the debt of France.
In addition, investors have been many want to subscribe to (about 200), with a total demand in excess of 23 billion euros, according to the AFT. After the success of this first operation, Bercy could launch other loans of the same type, depending of the application.