The proceeds will only be used for projects which “have a significant impact and quantifiable in terms of greenhouse gas emissions”. AFD will opt for renewable energy, energy efficiency, urban transport, forestry and agriculture projects which meet set criteria on the carbon footprint:
- “Projects with an ex-ante analysis of its carbon footprint
- Projects of climate change mitigation: carbon footprint <-10 kteq CO2 / year
- Projects aligned with local public policies”
Independent reviewer, Vigéo worked with AFD to develop the eligibility framework and has provided a second opinion (which has been made public - something we applaud).
Investor diversification is a key advantage for issuers when deciding to issue a green bond. Traditionally AFD attracts French investors for its 10 year bonds however for this issuance international investor’s account for 73% (great results). In addition to a wider geographic split there was a big demand from Socially Responsible investors who account for 70% of the order book. The issue is another great example of achieving investor diversification through green bonds.
Bravo Agence Française de Développement! Welcome to the club.
