Proximus SA

11/10/2021 | Press release | Distributed by Public on 11/10/2021 11:35

Proximus successfully issues its first EUR 750 million Green Bond

As part of its #inspire2022 corporate strategy, Proximus is playing a leading role in Belgium's green transition by aiming to become truly circular by 2030 and be net zero by 2040. Both the Fiber and 5G networks are more energy efficient and will be partly financed by the proceeds of this green bond.

In order to match its funding policy with its mission, sustainability strategy and targets, Proximus signed a sustainable revolving credit facility in October 2020 and established a Sustainable Finance Framework in May 2021.

The proceeds raised within this framework are used for financing projects with a positive effect on energy efficiency, renewable energy, clean transportation, green buildings, circular economy and social & digital inclusion. The green bond announced today is the first step in issuing green, social and sustainable finance instruments under this Framework.

Proximus' Sustainable Finance Framework was reviewed and approved by Sustainalytics, a leading independent ESG research firm. Sustainalytics opined that the Proximus Sustainable Finance Framework is robust, transparent and in alignment with the four core components of the ICMA and LMA Green and Social Principles.

This transaction resulted in a fixed rate coupon of 0.75% per annum. The issuance was very well received with an order book in excess of EUR 4 billion (more than 5 times oversubscribed) and was placed with more than 160 European institutional investors of which a vast majority are green investors. This 15 year tenor, maturing 17 November 2036, will enable Proximus to increase its average debt maturity from 4.2 years to more than 8 years.

The proceeds will be used for general corporate purposes, including refinancing of existing debt, especially the EUR 500 million institutional bond maturing in March 2022.