New €80m 12yr French enviro bond 90% over-subscribed - Calais shows the way

Yesterday the Nord-Pas de Calais region of France announced its second successful issuance of a socially responsible bond since 2008.

The €80m, 12 year bond was facilitated by Credit Agricole - yes, it's that Tanguy Claquin again. Coupon (basically interest rate) was 3.42%, S&P rating is AA-.

Actual orders for the bond overshot the issuance amount by almost double (orders exceeded € 150m) with over 90% of orders coming from institutional investors with some level of ESG criteria for investments. The funds will be allocated to three sectors: transport & infrastructure (70%: river systems and transport etc.), energy (20%: energy quality of buildings, development of eco-materials, etc.) and biodiversity (10%: regional forest development and other projects).

This is the fourth such bond issued in the Eurozone this year and demonstrates that there is demand for this type of product despite the difficult economic backdrop.