SNCF issues first green charity bond
In a private placement on 3 July 2023, SNCF SA issued a 12-year, fixed-rate green charity bond with a shared coupon.
Shared coupon benefits hospital charity
Under the terms of this transaction—the first of its kind—investors agreed to share a portion of their coupon with the Robert Debré Institut du Cerveau de l’Enfant, part of the Paris Hospital Foundation.
0.01% of proceeds per year
Investors gave up 0.05% of their annual coupon over the life of the bond. The arranging bank also donated to the Institute, contributing one-third of its commission on the transaction, while SNCF SA will donate 0.01% of proceeds from the issue annually.
€2.3m over 12 years
In short, all of the parties to the transaction joined forces to support the Institut du Cerveau de l’Enfant, which will receive nearly €2.3 million over the life of the 12-year bonds. This pioneering transaction combines the environmental benefits of a green bond with the social benefits of a charity bond.
4 investors
The transaction involved 4 investors:
- Abeilles Assurance (€50M)
- CNP Assurances (€50M)
- CDC AM (€50M)
- Covéa (€150M)
Share the article