Neoen launches the first ever European Green Convertible Bond


Neoen, one of the world’s leading and fastest-growing independent producers of exclusively renewable energy, announces today the launch of the first ever Green Convertible Bond being offered to qualified investors only, in accordance with Article L. 411-2, 1° of the French monetary and financial code (Code monétaire et financier), for a maximal nominal amount of €170 million.

Proceeds of the Neoen’s green convertible bonds will be allocated to finance or refinance renewable energy production (solar PV, wind power) or storage activities in consistency with EU taxonomy requirements and with the Framework released today and available on Neoen website. It will thus contribute to finance growth towards Neoen’s target of having more than 5 GW in capacity in operation or under construction by the end of 2021, while optimizing balance sheet within the guidelines given by the Company regarding an average leverage ratio of approximately 80- 85% of invested capital on an all-in basis including all Group debt, whether corporate, junior or senior.

Xavier Barbaro, Chairman and CEO of Neoen, comments: “We are extremely happy to innovate with the launch of this first ever European green convertible bond issue. This confirms Neoen’s commitment to be at the forefront of sustainable finance, having made the choice of focusing mainly on mature carbon-free technologies, with a mission to produce the most competitive renewable electricity, sustainably and on a large scale. This transaction will contribute financing our investments in sustainable growth. This issue also provides an opportunity for investors to participate actively in the global combat against greenhouse gas emissions and climate change”.

Neoen Green Bond Framework

Sustainable development is at the heart of Neoen’s activity and an integral part of its business model. Since 2019, with a view to transparency, the Group has committed voluntarily to the preparation of a declaration of extra-financial performance, available in its 2019 Financial report. In that context, at the same time as the Bond issuance and for transparency purposes, Neoen released today on its website its Green Bond Framework (the “Framework”), that was established in accordance with the Green Bond Principles 2018 published by the International Capital Market Association (ICMA) and the main provisions of the EU Green Bond Standards. The external review of the Framework by Vigeo Eiris, as Second Party Opinion provider, is available, together with the Framework, on Neoen’s website.

Within the Framework, Neoen lays out, in alignment with the EU Green Bond Standards recommendations:

  • Its sustainable strategy and rationale for issuing a green bond contributing to climate change mitigation and adaptation objectives of the EU taxonomy.
  • As recommended by the TEG (Technical Expert Group on Sustainable Finance set up by the European Commission)
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