GDF Suez raises $3.5bn to fund renewables drive
French energy powerhouse issues largest ever ‘green bond’.
GDF Suez has successfully issued the largest ever green bond to support its renewable energy strategy.
The French energy powerhouse raised EUR 2.5bn ($3.44bn) from the sale which was three times oversubscribed, it announced today.
Investors focused on environmental and socially responsible investing swooped for almost two thirds of the issue.
The funds will be used to finance renewable energy and energy efficiency projects such as remote (smart) metering and the construction of integrated district heating networks powered by biomass plants, the company said.
GDF Suez chairman and CEO Gerard Mestrallet said: “This unusually large issue will serve the strategic priorities and sustainable growth strategy of GDF SUEZ in renewables and energy efficiency in Europe and throughout the world.
“Projects financed by this bond issue will enable the Group to address the great energy and environmental challenges we face: meeting energy needs, ensuring security of supply, combating climate change, and optimizing natural resources.”
To be eligible, the projects financed must meet a number of criteria in five areas: environmental protection, contribution to local development and the well-being of local communities, fair and ethical relationships with suppliers and sub-contractors, human resources management, and good corporate governance for the selected projects.
GDF Suez has previously announced its intention to increase its installed renewable energy capacity by 50% between 2009 and 2015.
The company has the largest power and water portfolio of any international company in the GCC.