{"id":97540,"date":"2020-10-08T22:53:39","date_gmt":"2020-10-08T20:53:39","guid":{"rendered":"http:\/\/beta.next-finance.net\/?p=97540"},"modified":"2020-11-03T15:55:40","modified_gmt":"2020-11-03T14:55:40","slug":"societe-du-grand-paris-successfully-launched-its-fifth-and-sixth-green-bond-issuances","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/societe-du-grand-paris-successfully-launched-its-fifth-and-sixth-green-bond-issuances\/","title":{"rendered":"Soci\u00e9t\u00e9 du Grand Paris successfully launched its fifth and sixth Green bond issuances"},"content":{"rendered":"

In two years, Soci\u00e9t\u00e9 du Grand Paris secures half of the Grand Paris Express financing<\/strong> <\/em><\/p>\n

On Wednesday 07th October 2020, Soci\u00e9t\u00e9 du Grand Paris successfully launched its fifth and sixth Green
\nbond issuances under its Green EMTN programme, for a total amount of EUR 6bn split over two distinct
\ntenors: EUR 3bn at 10-year (0% coupon) and EUR 3bn at 40-year (0.7% coupon). This represents the largest
\nGreen transaction ever issued by a non-sovereign issuer.<\/p>\n

This new Soci\u00e9t\u00e9 du Grand Paris transaction attracted over 230 investors on the 40-year tranche, and 185
\ninvestors on the 10-year tranche, for a total demand of EUR 18bn. Despite a global environment impacted
\nby the Covid-19 crisis, international investors have reiterated their keen interest for the financing of the
\nGrand Paris Express, confirming the credibility of Soci\u00e9t\u00e9 du Grand Paris who now ranks 4
\nth largest Green
\nBond issuers worldwide.<\/p>\n

Soci\u00e9t\u00e9 du Grand Paris would like to thank its relationship banks gathered in that transaction and its
\ninvestors for their strong contribution and continuous engagement since the establishment of the first ever
\nGreen EMTN programme in 2018: Soci\u00e9t\u00e9 du Grand Paris has now raised EUR 16bn which represent almost
\n50% of the Grand Paris Express financing.<\/p>\n

\u201cOnly two years after launching the first 100% Green Bond programme on the international markets,
\nSoci\u00e9t\u00e9 du Grand Paris has now secured half of the Grand Paris Express financing. This renewed confidence
\nfrom the capital markets strengthens Soci\u00e9t\u00e9 du Grand Paris in its investment dynamic for the benefit of
\nthe companies, SMEs or majors, involved in the project of the Grand Paris Express. The annual rate of
\ninvestment will thus remain at an average of EUR 4.5 billion per year until 2023. The trajectory remains
\nclear, stable and readable and fully contributes to the French economy\u2019s green recovery.\u201d<\/em> said Thierry Dallard, Chairman of the management board of Soci\u00e9t\u00e9 du Grand Paris.<\/p>\n

The transactions were met with exceptional investor interest from both conventional and ESG investors. At
\nits closing, orderbooks exceeded a combined EUR18bn of wich EUR 8.5bn at 10 year and EUR 9.5bn at 40
\nyear. It is the largest oderbook ever achieved by Societe du Grand Paris.<\/p>\n

Transaction Highlights<\/strong><\/p>\n

On Friday 02nd October 2020 at 17:26 CET, Societe du Grand Paris annnounced to the market a Global investor
\nBroadcast and a live Q&A to be held on 6th October arranged jointly by Barclays and BNP Paribas as well as a
\ndual tranche EUR 10 and 40 year green benchmark transactions.<\/p>\n

Barclays, Credit Agricole CIB, HSBC, J.P. Morgan, Natixis and Nomura have acted as Joint Lead Managers on the
\n10-year tranche while BNP Paribas, Deutsche Bank, Goldman Sachs Bank Europe SE, Natwest Markets and
\nSoci\u00e9t\u00e9 G\u00e9n\u00e9rale acted as Joint-Lead Managers on the 40-year tranche. Credit Agricole CIB acted as
\nCommunication Coordinator.<\/p>\n

On Wednesday 07th October 2020 at 08:53 CET, Societe du Grand Paris opened books on the dual tranche
\nproject with a guidance of 25bps area over OAT November 2030 for the 10 year tranche and 28bps area over
\ninterpolated OATs for the 40 year tranche.<\/p>\n

EUR 3bn 25th November 2030 tranche:<\/strong><\/p>\n

Investors immediately showed a significant interest in this new tranche and the orderbook quickly grew,
\nnotably thanks to large tickets placed by a number of high quality investors. At 10:46 CET, less than two
\nhours after guidance was released to the market, Soci\u00e9t\u00e9 du Grand Paris was able to communicate on an
\norderbook reaching over EUR 6.75bn (excluding JLM interest) and to set the spread at 22bps over OAT
\nNovember 2030.<\/p>\n

Despite the spread tightening, the orderbook continued to grow and closed over EUR 8.5bn at 11:30 CET,
\na further testimony of investors\u2019 confidence in Soci\u00e9t\u00e9 du Grand Paris. The transaction was launched at
\n12:00 CET, with a size set at EUR 3bn.<\/p>\n

The 10 year tranche was priced at 15:26 CET with a coupon of 0.0% representing a yield of -0,013% and a
\nspread of + 22bps over OAT November 2030.<\/quote><\/p>\n

Traditionally active on this part of the curve, Bank Treasuries received the lion share of allocations (48%),
\nfollowed by Asset Managers (28%) and Central Banks \/ Official Institutions (14%). French and UK investors
\nwere the most represented, with respectively 25% and 24% of allocations.<\/p>\n

EUR 3bn 15th October 2060 tranche:<\/strong><\/p>\n

At 10:46 CET, the oderbook grew quickly and stood in excess of EUR 7.5bn (excluding JLM interest),
\nallowing the issuer to set the spread at 25 bps over interpolated OAT May 2052 and OAT May 2066.<\/p>\n

The investor demand continued to pile in and the oderbooks closed at 11:30 CET in excess of EUR 9.5bn
\n(excluding JLM interests). The transaction was launched at 12:00 CET and allowed the issuer to set the size
\nat EUR 3bn.<\/p>\n

The 40 year tranche was priced at 15:28 CET with a coupon of 0.7% representing a yield of 0.750% and a
\nspread of + 25bps over the interpolated OATs.<\/quote><\/p>\n

The geographical distribution is nicely split between domestic investors (France 45%) and the international
\ninvestor community (55%). In terms of investor types, the bulk of the demand came from Insurance
\ncompanies (44%) and Asset Managers (40)% followed by banks (10%) and Central Banks \/ Official
\nInstitutions (3%). <\/p>\n

10 & 40-year green bond terms summary<\/strong>
\n\"-1043.jpg\"<\/a>