Société du Grand Paris reopens European Agency public market

Looking to launch its 2022 funding programme – expected to total around €7 billion – SGP asked NatWest to support in the role of Joint Bookrunner with a 20-year Green Bond issuance. NatWest has been a frequent lead manager since SGP’s inception, lead managing trades every year since 2019, including a new 30-year and 40-year issuance in 2020, and a 30-year bond in 2021.

SGP’s announcement of the deal marked the much-anticipated return of French Agency supply, resulting in strong demand as soon as order books opened, with investors in particular welcoming the 20-year tenor. Books peaked at €2.3 billion allowing the price to be tightened, and SGP opted for a final size of €1.75 billion.

With high orders from ESG investors, 27% of the allocation went to accounts in Germany, Austria and Switzerland, while French investors took 26% and UK investors 18%. Looking at investor type, Asset Managers made up the majority share of 54%, followed by insurers and pension funds with 23%.

Damien Carde, Head of FBG DCM, NatWest, commented: “We are thrilled about SGP’s successful first transaction of 2022. The strong demand from ESG investors demonstrates the crucial role the transport sector plays in the transition to a low-carbon and greener economy and underlines the reputation of SGP as a green issuer with a strong credit and sustainability story.”

Caroline Haas, Head of Climate and ESG Capital Markets at NatWest, added: “We are delighted to have supported SGP with their first green bond issuance for 2022, reopening the French Agency public market.  The transport sector is a major emitter of greenhouse gases, and it is therefore very encouraging to see companies such as SGP pursuing ambitious low-carbon transport plans, making a real difference. At NatWest we’re committed to helping organisations across the UK, Europe and the US access funding for their sustainability journey.”

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