OREANDA-NEWS. To support its ambitious development strategy in renewable energies and energy efficiency, GDF SUEZ issued a Green Bond of EUR 2.5 billion.

The bond has two tranches: a 6-year tranche of EUR 1,200 million with a 1.375% annual coupon, and a 12-year tranche of EUR 1,300 million with a 2.375% annual coupon. The average coupon amounts to 1.895% for a 9.1 years average duration. The bond was 3-times oversubscribed and very successful with French, German and UK institutional investors. Strong demand came from investors focused on environmental and socially responsible investing who bought 64% of the issue.

The funds of this bond issue will be used to finance the Group's growth not only in renewable energy projects such as wind farms and hydroelectric plants, but also in energy efficiency projects such as remote (smart) metering and the construction of integrated district heating networks powered by low-emission biomass plants.

On the occasion of the issue, GDF SUEZ Chairman and CEO Gerard Mestrallet stated: “This unusually large issue will serve the strategic priorities and sustainable growth strategy of GDF SUEZ in renewables and energy efficiency in Europe and throughout the world. Last week, this strategic priority was confirmed by GDF SUEZ winning the competitive tender for offshore wind farms in France. Projects financed by this bond issue will enable the Group to address the great energy and environmental challenges we face: meeting energy needs, ensuring security of supply, combating climate change, and optimizing natural resources.”

To be eligible, the projects financed must meet a number of social and environmental criteria in five areas: environmental protection, contribution to local development and the well-being of local communities, fair and ethical relationships with suppliers and sub-contractors, human resources management, and good corporate governance for the selected projects. These criteria were developed by GDF SUEZ with the Vigeo ESG rating agency and are published on the GDF SUEZ website. Bond issue proceeds will be allocated according to a specific traceability procedure that will be checked by one of the GDF SUEZ statutory auditors.

Aware of its responsibility and of the major role it plays in the energy transition, the Group has publicly announced ambitious environmental objectives: to increase its installed capacity in renewable energies by 50% between 2009 and 2015, to increase by 40% its energy efficiency business activity in Europe by 2018, and to reduce by 10% its specific CO2 emissions by 2020.