Natixis Lead-Manages @SocieteduGrandParis' 2021 inaugural benchmark at historically low spread
On Thursday April 29th, @Societedugrandparis launched its first EUR transaction in 2021 by issuing a € 2bn 25-year Green Bond at OAT + 20 bps. Natixis acted as Joint Bookrunner on this transaction.
@Societedugrandparis is a 100% state-owned public industrial and commercial establishment created by a law dated June 3, 2010. Its primary mission is to draw up the blueprint and lead the infrastructure projects relating to the #Grandparisexpress. The following fall within its remit: creating networks including building the lines, infrastructure and amenities; building and developing stations including interchanges; purchasing rolling stock to run on this infrastructure. In 2018, Société du Grand Paris became the first issuer to structure a 100% Green EMTN program exclusively involving the issuance of green bonds that started in 2018. This May 2046 €2bn 0.875% offering is SGP’s 7th benchmark transaction.
The mandate for this transaction was announced to market participants on Wednesday April 28th. The signature of @Societedugrandparis spoke for itself on the execution day. The quality of the orderbook was seen continuously growing so that the final orderbook was seen in excess of € 4.7bn. Such a strong demand allowed the issuer to tighten the initial price by 3 bps, achieving a reoffer spread of 20 bps over the interpolated French curve, the historically low spread for @Societedugrandparis. The majority of the transaction was allocated to the high-quality “real money” accounts, with 61% accounting for Asset Managers, 20% - for Banks, 13% - for Insurances & Pension Funds and 4% - for Central Banks & Official Institutions.
@Societedugrandparis successfully returns to the Euro market for its 2021 Green debut, demonstrating the quality and recognition of its signature and achieving the lowest reoffer spread against OAT, ever since 2018.