Valeo completes a €600 million debut green bond and welcomes the
European Investment Bank for its important participation.
PRESS RELEASEParis, October 6 ,
2023
Valeo completes a €600 million
debut green bond and welcomes the European Investment Bank for its
important participation.
Valeo today announces the successful completion
of its inaugural green bond, raising 600m worth of bonds. The
European Investment Bank (EIB) has subscribed in the amount of 150m
euros in what is the first green bond issued by Valeo.
A key feature of this operation is the
establishment of a pioneering green and sustainability-linked
financing framework covering both reporting, governance and
verification, which Valeo has put in place to guarantee the funds
are applied solely to activities which satisfy the EU Green and
Sustainability Taxonomy. These include projects related to both
production systems and the introduction of new technology in the
relevant categories including clean transportation, renewable
energy, energy efficiency, sustainable water and waste water
management, and circular economy. Valeo has so far identified a
pipeline of circa 2bn euros of eligible projects. Examples include
smart heat pumps, battery terminal management systems, electric
motors, and compact and quiet front-end cooling modules.
Valeo has committed to achieving carbon
neutrality by 2050 covering its entire value chain – including
suppliers, operating activities and the end use of products sold by
the Group (direct and indirect emissions, i.e., Scopes 1, 2 and 3
emissions). By 2030, Valeo's emissions will have decreased by 45%,
in absolute terms*, compared with 2019. On the journey to carbon
neutrality, 2030 is an important and fast-approaching
milestone.
The bond will enable Valeo to continue to expand
its portfolio of technologies that contribute to low-carbon
mobility, in particular its solutions for vehicle electrification,
a field in which the Group is a world leader.
Valeo joined the new "CAC 40 ESG" index, in
March 2021, which includes 40 companies that have demonstrated best
practices from an environmental, social and governance
perspective.
Valeo is regularly recognized for its
comprehensive sustainable development (environmental, social and
governance) approach.**
The European Investment Bank is a long-term
partner of Valeo’s, having provided a total of 750 million euros in
funding for investments into technologies designed to reduce carbon
emissions and improve active vehicle safety since 2020.
These green bonds fully comply with the Bank's
framework and eligibility criteria for climate action and
environmental sustainability. This green bond financing offer
complements the Bank's existing long-term bank loan offering.
This operation, which is a first for the EIB in
France, should help attract long-term financing on the public debt
markets for green investments.
"We are pleased with the success of this
inaugural green bond. It is an endorsement of the progress we have
made in establishing our Group as a leader in the development of
electric vehicles in particular and sustainable mobility in
general. We are particularly pleased that the EIB, which is playing
a key role in financing the European Union’s climate goals, has
been willing to support this transaction” said Christophe Perillat
Valeo CEO.
Ambroise Fayolle, Vice-President of the EIB,
commented: “I am delighted with this transaction, carried out with
a long-standing partner of the bank, which has made the green
transition the priority of its investments. This first
participation by the EIB as a leading investor in a senior green
bond issue in France demonstrates the strong innovative capacity of
our teams. A pioneer in the issuance of green bonds since 2007, the
European Union’s Climate Bank is proud to contribute to attracting
more private sector financing for the energy transition by
underwriting this green bond issue.”
*taking into account the positive impact of the electrification
benefits of Valeo's solutions in terms of CO2 emissions reduction,
also known as the "Adjusted target”.
**in reference to ESG ratings from extra-financial agencies,
2022 URD page 45
About Valeo
As a technology company and partner to all
automakers and new mobility players, Valeo is innovating to make
mobility cleaner, safer and smarter. Valeo enjoys technological and
industrial leadership in electrification, driving assistance
systems, reinvention of the interior experience and lighting
everywhere. These four areas, vital to the transformation of
mobility, are the Group's growth drivers.
Valeo in figures: 20 billion euros in sales in 2022 | 109,900
employees at December 31, 2022 | 29 countries, 183 plants, 21
research centers, 44 development centers, 18 distribution
platforms.
Valeo is listed on the Paris Stock Exchange.
Media Relations
Dora Khosrof | +33 7 61 52 82 75Caroline De Gezelle | + 33 7 62
44 17 85press-contact.mailbox@valeo.com
Investor Relations
+33 1 40 55 37 93
valeo.corporateaccess.mailbox@valeo.com
About EIB
The European Investment Bank (EIB) is the EU's
long-term financing institution, whose shareholders are the 27
member states. It provides financing for quality investments that
help to achieve Europe's key objectives, such as the European Green
Pact, which aims to make the EU carbon neutral by 2050. As the EU's
climate bank, it aims to encourage the emergence and deployment of
new technologies to meet the challenges of the energy transition to
a new low-carbon growth model. In 2022, EIB investment in France in
renewable energies, clean mobility and energy efficiency amounted
to 5.9 billion euros, representing 70% of its financing.
Media Relations
Christophe Alix | +33 6 11 81 30 99 - c.alix@bei.org
Transaction details
- First EUR benchmark issue in accordance with Valeo’s Green and
Sustainability-Linked Financing Framework
- 5.5 year bond with coupon of 5.875%
- 600m euros raised
Credit Agricole CIB acted as Sole ESG
Structuring Advisor. BNP Paribas and Credit Agricole CIB acted as
Joint Global Coordinators, and with Citi, MUFG, Natixis and Société
Générale as Joint Active Bookrunners.
The Green Bond offering has been issued in
accordance with Valeo’s Green and Sustainability-Linked Financing
Framework dated September 2023. A Second Party Opinion dated 25
September 2023 has been delivered by ISS Corporate Solutions.
The bond, a EUR Benchmark, RegS Bearer, senior
unsecured, offering off the EMTN Programme, is expected to be rated
Baa3 by Moody’s, and BB+ by S&P.
In 2022, 20% of Valeo Sales was eligible under
the EU Taxonomy regulation (in reference to 2022 URD page 275)
which illustrates the attractiveness of Valeo’s products to
contribute to a greener mobility.
- 20231006_PR EIB-Valeo -Green Bond
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