GDF SUEZ successfully issues the largest Green Bond to date

May 12, 2014

To support its ambitious development strategy in renewable energies and energy efficiency, GDF SUEZ today issued a Green Bond of €2.5 billion.

The bond has two tranches: a 6-year tranche of €1,200 million with a 1.375% annual coupon, and a 12-year tranche of €1,300 million with a 2.375% annual coupon. The average coupon amounts to 1.895% for a 9.1 years average duration. The bond was 3-times oversubscribed and very successful with French, German and UK institutional investors. Strong demand came from investors focused on environmental and socially responsible investing who bought 64% of the issue.

The funds of this bond issue will be used to finance the Group’s growth not only in renewable energy projects such as wind farms and hydroelectric plants, but also in energy efficiency projects such as remote (smart) metering and the construction of integrated district heating networks powered by low-emission biomass plants.

On the occasion of the issue, GDF SUEZ Chairman and CEO Gérard Mestrallet stated: “This unusually large issue will serve the strategic priorities and sustainable growth strategy of GDF SUEZ in renewables and energy efficiency in Europe and throughout the world. Last week, this strategic priority was confirmed by GDF SUEZ winning the competitive tender for offshore wind farms in France. Projects financed by this bond issue will enable the Group to address the great energy and environmental challenges we face: meeting energy needs, ensuring security of supply, combating climate change, and optimizing natural resources.”

To be eligible, the projects financed must meet a number of social and environmental criteria in five areas: environmental protection, contribution to local development and the well-being of local communities, fair and ethical relationships with suppliers and sub-contractors, human resources management, and good corporate governance for the selected projects. These criteria were developed by GDF SUEZ with the Vigeo ESG rating agency and are published on the GDF SUEZ website. Bond issue proceeds will be allocated according to a specific traceability procedure that will be checked by one of the GDF SUEZ statutory auditors.

Aware of its responsibility and of the major role it plays in the energy transition, the Group has publicly announced ambitious environmental objectives: to increase its installed capacity in renewable energies by 50% between 2009 and 2015, to increase by 40% its energy efficiency business activity in Europe by 2018, and to reduce by 10% its specific CO2 emissions by 2020.

GDF SUEZ develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: independent power production, liquefied natural gas, renewable energy and energy efficiency services.GDF SUEZ employs 147,200 people worldwide and achieved revenues of €81,3 billion in 2013. The Group is listed on the Paris, Brussels and Luxembourg stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).

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