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Over the last few years the European green financing market has mainly developed by way of
green bond issuances from sovereign, quasi-sovereign and large corporate issuers. To finance
additional efforts to promote European energy and ecological transition goals, new market
instruments are needed that enable smaller companies and green projects to access market
financing, as well as offer higher yields to investors.
The Green Credit Continuum program therefore aims to foster the development of the green
debt market beyond the existing green bonds, supporting small-scale green projects, and
financing SMEs and mid-caps.
Signed at the Paris Europlace 2019 international financial forum, the agreement between
Amundi and the EIB has three components. Firstly, it covers the creation of a diversified fund
that will invest in green high yield corporate bonds, green private debt and green securitised
debt. In parallel, a scientific committee of green finance experts will be formed to define and
promote environmental guidelines for these three markets in line with international best
practice and legislation derived from the European Commission action plan on financing
sustainable growth. Lastly, a green deal network will be put in place to source deals and
projects.
The goal of the agreement is to create several funds based on this model and to help establish
market standards for these new green finance segments. It aims to raise EUR 1bn within three
years, including a EUR 60m initial commitment by the EIB.
EIB Vice-President Ambroise Fayolle said: “When the EIB issued the world’s first green bond
in 2007 as part of its “Climate” bonds programme, it made a major contribution to the
development of this market. However, despite this fast growth, a significant financing gap
persists and huge potential is still waiting to be tapped in some green debt segments. I am
happy to be signing this programme with Amundi today. It will help promote sustainable finance
in Europe by including new issuers in the green finance market, making them even more aware
of environmental issues and environmentally friendly investments.”
Amundi CEO Yves Perrier added: “We are very honoured to sign this partnership with the EIB.
It offers a particularly innovative investment solution to institutional investors wishing to help
finance the energy transition and diversify their sources of yield in a low interest rate
environment. A responsible investment pioneer, Amundi is therefore strengthening its
contribution to combating global warming.”
To meet its climate commitments under the Paris Agreement and finance the associated
energy transition, Europe is missing an estimated EUR 180bn in financing a year until 2030.
To reach this level of investment, green finance must mobilise all of the debt capital markets.
Against this backdrop, the key role played by green bonds is widely recognised.
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