Morgan Stanley & Credit Ag shopping proposed EDF green bond this week / EIB issues 4yr ZAR500m ($48m) climate bond

Electricité de France (EDF) is planning a Euro bond linked to their renewable energy assets. They’ve mandated Morgan Stanley and Credit Agricole CIB to arrange a series of  investor meetings in Europe over the coming week. No word yet on size. EDF is rated A+/Aa3/A+ (Stable/Neg/Neg) by S&P/Moody's/Fitch.

It seems that EDF have been convinced that self-certification will not fly (hallelujiah), so project eligibility and selection criteria has been reviewed by ESG analysts Vigeo, who did the big Air Liquide bond. Tracking and reporting of disbursements will also be audited by an independent third party – a good development.

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Last week the European Investment Bank (EIB) issued a 4 year, ZAR 500m (EUR 36m) Climate Awareness Bond. The coupon is 6.75%. Joint lead managers were Citi and Morgan Stanley. Proceeds from EIB Climate Awareness Bonds go to EIB renewable energy and energy efficiency lending.

What’s interesting about this bond is that it was issued for European retail SRI clients (where there’s demand for South African Rand bonds). This market has been moving into bonds after having been largely an equities market in the past. EIB saw this as a test case for retail issuance; that suggests we’ll see more.