Natixis acted as Joint Bookrunner on the inaugural 2021 issuance of Unédic
Natixis acted as Joint Bookrunner on the inaugural 2021 issuance of Unédic. The € 3bn May-2034 transaction was priced at OAT+15 bps amassing significant demand in excess of €8bn while achieving pricing targets.
The proceeds from this transaction will be allocated under the Social Bond framework structured by Natixis to support companies, salaried workers and unemployed, a mission that has become ever more important in the current sanitary context.
Natixis is a historical partner of Unédic with more than 7 primary transactions since 2018 alone, with 4 of those under the Social Bond Framework under which all future transactions are to be issued under.
The inaugural Social transaction last May set a record as the largest social transaction ever priced in capital markets. Since then, Unédic has been able to continue this momentum from this success with following jumbo benchmarks across the curve.
The Social Proceeds will primarily be used to fund crisis response measures rolled out by Unédic, France’s unemployment insurance management body: on the one hand extending standard unemployment insurance programs, and on the other implementing an exceptional job retention scheme involving subsidized part-time working covering over 8 million private sector employees. Overall more than 11 million people have been directly supported by Unédic in 2020. This framework was introduced in the wake of the pandemic with Unédic becoming an ever more important player in the French social response and a market leader in the European SSA market.
The bond framework complies with ICMA’s (International Capital Market Association) Social Bond Principles, and covers major programs funded by Unédic, fulfilling its twofold role i.e. providing socio-economic protection against fluctuations in the labor market, and supporting French employees in returning to the job market and achieving sustainable employment.