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Last week’s bond saw demand of EUR 5bn, Bond Radar reported, enabling pricing to tighten from initial thoughts of 65bp-70bp over mid-swaps for the EUR 750m eight-year tranche and 90bp-95bp for the EUR 750m 15-year tranche to +42bp and +66bp respectively. Each tranche attracted similar levels of investor interest. Since its green debut in 2014, Engie has raised EUR 15.7bn in green bonds (including the latest transaction). See www.bondradar.com.

Engie reported that green bonds represented almost a third of total gross group debt at the end of last year. The company’s Integrated Report says the company has allocated most of its green bond proceeds to projects across renewable energy production, efficiency and storage; transmission and distribution networks; carbon capture storage and utilisation; clean transportation; green buildings; protecting natural resources; and environmentally sustainable management of living natural resources and land use.

Engie’s business profile covers almost all utility sub-segments, from power generation, gas transmission and distribution to electricity and gas supply. Scope notes the group’s strong and resilient business risk profile, supported by leading outreach and diversification globally and large exposure to robust regulated and quasi-regulated utility segments.

In a separate research note published on 18 October, Scope said it expects ESG-linked debt to make up at least a quarter of all European non-financial corporate bond issuance this year compared with only 8% last year, as momentum gathers behind social and sustainability-linked fundraising as well as green bonds.

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