Major European investors back France green bond ‘milestone’

France has attracted major institutional backers for its inaugural green bond, launched yesterday, including Dutch and French pension investors. Dutch asset managers APG, PGGM, and MN subscribed for a combined amount of €967m, with French pension funds ERAFP and Ircantec also among those known to have participated in the issuance.

The deal was a €7bn 22-year green bond issued by Agence France Trésor (AFT), the government office managing French sovereign debt. The bond will pay a coupon of 1.75% and was priced at 100.162 for an issue yield of 1.741%.

It was the first green bond to be issued by a euro-zone sovereign. In December last year, Poland became the first European sovereign to issue a green bond, having priced a €750m five-year deal. It was also the largest and longest-dated green bond to have been issued so far, according to AFT. France’s green bond issue was more than three times oversubscribed, drawing €23bn of demand.


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